Nursery worker providing holiday cover

[twinmummy2]

My 3 year old twins are very happy in the local preschool, but I need childcare for them after preschool and in the school holidays. I contacted the preschool and they spoke to my twins' key worker and she has offered to help with the after school and holidays - which I am delighted about because she is amazing. I assume this will be legal as she is NVQ level 3, and the preschool put her in contact with me. I am planning to pay cash because it will be ad hoc so easier, but I wondered if anyone has any advice on how much I should pay as a daily rate (I might need her to also look after my 1 year old in the holidays) ?

Legally you can pay whoever you like to look after your children, regardless of their qualifications.

You will be her employer so will need to register as an employer and pay her tax/NI and employers NI. Paying cash in hand is illegal.

Daily rate will depend on whereabout in the country you are. Average is probably about £10ph gross. In London, this will be more like £12/13ph gross, in other area it may be less.

Thanks - that is a helpful indication on costs.

It is not illegal to pay cash - the purpose of making payment in that manner is because it will be most convenient for me as she might do different hours at different times and I can pay as we go along (grabbing money from the cash machine on my way home from work rather than having to organise bank transfers/wait for cheques to clear.)

Also, she won't be employed by me, she will be helping as a childminder on an ad hoc basis, as and when needed (probably for a fixed rather than hourly rate). She will continue to be employed by the preschool.

A childminder is a self employed, ofsted registered person working from their own home, in your home she will be a nanny. I would take advice on whether you will be her employer and will have to deduct her tax, or if she can register as self employed and do her own tax return. Her employment with the school doesn't mean she won't be employed by you.

'the purpose of making payment in that manner is because it will be most convenient for me'

I'm sure it's most convenient for all employers to not bother dealing with the tax office unfortuantely that's not how the tax system works.

'she won't be employed by me, she will be helping as a childminder on an ad hoc basis'

From what you've said it sounds like she will be a nanny, an employee. Nannies are not usually allowed to be self-employed, although there are some exceptions to this (from what you say it doesn't sound like this would be an exception).

A childminder can be self-employed and can be paid cash, they must also be registered with Ofsted and look after the children in their own home. Ofsted registration for a childminder can take months.

'She will continue to be employed by the preschool. '

This is irrelevant. If she got a weekend job in Tesco, she would continue to be employed by the preschool, but she would also be emplyed by Tesco (she wouldn't be self-employed working at Tesco!).

yes you may pay cash as you wish but unless she is registered as a childminder, working from her own own home she will be your temporary nanny and you will need to make arrangements to administer PAYE

You really need Nick here, or MrA for more precise advice

Just to point out when I say you can't pay cash, I mean you can't pay 'cash in hand' i.e. no tax, if you wish to actually give her cash instead of a bank transfer you can (but you also need to sort tax/NI).

Thanks for all the responses. I have already checked the criteria for employment with HMRC, and in this particular situation she will not be employed by me. Really what I was asking for advice on was an average daily rate of pay from anyone who had been in this situation previously.

In this situation it would not be up to you to determine the rate of pay. If she is self employed she is offering you a service and she decides what she charges for that service.

I feel it could range from 8 to 15 an hour and may have minimum time period applying, such as min of 3 or 4 hours.

Yes, you are exactly right on the service point and I am shortly meeting to discuss her terms/availability, but I wanted to do my homework first to make sure whatever she was looking for was reasonable - it is good to know an average of around £8-£15 ph is in the right range.
Thank you everyone for the advice, it never seems easy trying to balance childcare and work :-)