Salary gross or net?

[NoMoreWineForMeThen]

Am I correct in thinking that a Nanny's salary should always be agreed gross?

Met a lady who seems perfect but she asked for salary of £9ph net. Does that put her on quite a high salary when looking at gross pay? She was pretty adamant that it's normal practice for employers to pay a a Nanny's tax but that doesn't appear to be the case as far as I can see.

Nannies in our area ask for between £7-£10 ph gross and I was hoping that we would find someone for £9ph gross.

According to Mr Anchovy's PAYE calculator that puts her on about £11.45 per hour gross, which I think is high. Whereabouts are you?

The rate is whatever you both agree, if you deal with her taxation etc you become an employer and your home becomes a workplace, that comes with its own headache. If she is self employed then you simply buy her service.

I know which I would prefer.

She was pretty adamant that it's normal practice for employers to pay a a Nanny's tax

Yes, the employer should pay the nanny's tax but this tax should be taken from her gross salary. It used to be the norm for nannies to request their salary in net terms (even some agencies quote net) but slowly we are managing to pull them into the 21st century and get salaries quoted in gross figures.

So if you agreed a salary of £9 gross per hour for a 40 hour week that would mean that the nanny's net salary is £7.33 per hour after tax and national insurance is deducted.

Agree a gross salary. If you agree £9 ph net the tax could get complex especially if she does other work as well, and it's hard to know exactly how much you would end up paying. It may have to be higher than £9 tho. Nannys round our way seem to want £10 net

TheFallenNinja - it is quite rare for a nanny to be able to be self employed. Nannies that do short term temping and maternity nurses are usually the only ones.

Have a read here.

thefallenninja its not actually a choice re employed / self employed most nanny contracts would mean the nanny always meets the hmrc employee tests & has to fall under paye. The rate is a separate issue which i guess would depend on supply/ demand experience etc in op's specific area.

We are in Birmingham so I do think over £11ph is too much.

Ah I see, so I pay the tax and NI but from the gross amount agreed. I then pay employers NI in addition to the gross salary. Would a company such as NannyTax take care of all of this for me?

Yes they would. There are several companies like NannyTax and their charges vary, so shop around.

Yes use a payroll service, they can charge less than £150 and take a lot of the hassle away, plus provide you with advice on tax and sometimes employment issues.

Sounds a bit high, more than I get in Surrey (outside M25).

Is it a fulltime job, or part-time? Are thr hours really unsociable such as 5am?
Unsociable hours could affect salary a bit.
Ultimately advertise the job at the salary you want to offer.

Hi nannynick
It's 7.30am to 6pm, 3 days per week. It is caring for three children though?

Those are pretty normal hours and 3 children does not make any difference in my view.

So I agree with you that 11+ is on the high side.
Are there other applicants?
Could you offer £10 gross and see who applies. Perhaps consider a 50p rise after 6 months, then review after 1yr point.

Better to raise salary over time than start high in my view. If you start high, nanny will still expect a pay review and may leave if it does not rise.

What does your budget allow? No point considering people you cannot afford.

My Bham experience is out of date but IMO that is high for the area. It'll be around £10gross in Harbourne, Edgbaston, Moseley and possibly towards the centre. Super qualified and experienced may get £11. Other areas £8 or 9ish. £7 gross would be low.

I would start by advertising the job at £9 gross and see who applies, rather than going through the interview process and then finding out your expectations are too different.

Thanks all. We can pay a maximum of £10ph so I'll perhaps offer £9 initially and see where we get to!