Paying a nanny £80 per day net

[BBtie]

Hello all, apologies if this topic has been covered before, had a search and couldn't see it. I am a new mum about to employ a nanny for 2 days a week. She is asking for £80 a day net. I know that I have to pay tax and NI on top of this and am aware of how much this will cost per month and over a year. However, I have seen some disussions about the new changes to the PAYE system in April 2013 to cope with the restructuring of the benefits system associated with the introduction of "Universal Credit" - some websites are saying it is now pretty much impossible to pay a nanny net anymore as her tax codes may change leaving me with a bigger bill. I am not sure what to do - insist on a gross amount to be stated within the contract, I am not sure how much this would be, the only numbers I have are the actual cost to me of employing the nanny 8 days a month at £80 per day net, these numbers include my employers NI contributions etc.

So, I am wondering:

1. Should I insist on contracting a gross daily rate and state this in the contract
2. How do I reach a gross figure for the nanny based on an £80 per day net fee

Thanks in advance for any help, am feeling a bit lost and as I just cancelled my babe's nursery place am also rather stressed!

Have a look at Mr Anchovy's PAYE calculator here - it will show you how much it works out as gross, you just fill in the blanks (how many hours a day is that for?) I know a lot of people use payroll services for nannies as it takes away a lot of the hassle.

Brilliant, thanks!

Definitely insist on a gross payrate - net would be a nightmare!

1. Should I insist on contracting a gross daily rate and state this in the contract

Yes

2. How do I reach a gross figure for the nanny based on an £80 per day net fee

If she only worked for you this would be £82 per day, if she already has another job it would be £105 per day, or if she worked 5 days a week for you it would be £103 per day - this is the problem with thinking in net pay.

The introduction of Real Time Information (RTI) in April doesn't make any difference to this situation, lots of information on web sites is out of date as changes have been made to the system since it was first proposed.