Advice needed employing a nanny for the first time

[Middledaughter]

We are employing a nanny starting mid August for 2 days a week. As she will be earning just on the lower earning threshold i don't think we are liable to pay tax but, having spoken to nanny tax, i think we still need to register as an employer, generate home made payslips, write contracts etc.

Any advice very gratefully received on how to do it yourself or am I better off paying the subscription fee and doing it via them?

Thank you

Bump - hope someone here has good ideas, as I'm going through the same.

If you feel confident in what you are doing, you can use the HMRC online system. However for around £135 a year you can have a payroll company do it for you... so depends if you feel it is worth £11.25 a month. Keep in mind that situations can change, so you may need advice on doing SMP, SSP, or other statutory payment calculations, advice on how to do end of year.

To be honest, I would suggest using a payroll company for the first year, so you have one less thing to worry about. My employer has been using www.payefornannies.co.uk for 5 years now without any issues, so unless you need particular things nannytax provide beyond the basic payroll function, do consider using the lower cost providers like PAYEforNannies. I think PAYEforNannies can provide a contract, though you can also find a contract from ANA/Voice on NannyJob.co.uk.

Agree a GROSS salary with your nanny, as they may get other employment on the days they do not work for you.

I think the handbook for doing your own PAYE is P49 - have a read of that to see if you understand it.

Note: Under the new RTI system, you need to register as an employer BEFORE you pay your nanny. According to PAYEforNannies it can take several weeks to register, so they advise registering at least 4 weeks before paying your nanny.

I can highly reccomend www.taxnanny.co.uk
I used Nannypaye and they were awful. Taxnanny reply to my emails almost immediately even at night, well priced too.

Hello,
I am returning to work and have 2 children under
Two and a half. I am looking for a nanny and wanted
to see what your thoughts were on starting wage.
In fact any assistance, information or advise is appreciated.
I will be full time.

Thanks

NorthG - probably best to start a new thread and give a lot more info, such as hours of work, rough location, live in or live out, car provided or expect nanny to have a car, what activities you expect nanny to do.
All sorts of things will affect the cost to you as the employer. Nanny salary varies, often higher in City locations than rural. The nannies experience can be a factor, so someone new to nannying may accept £8, whereas someone experienced may not accept less than £11. I would say £10 outside of a City is a good figure to use for budget calculations. Don't forget about taxation, employers have to pay Employers National Insurance on top of the gross wage. Some nannies want a Net wage (so the amount they take home after all taxes) but I would not advise to agreeing to that as taxation changes each year.