tax issues with being a second employer

[fasterthanthewind]

I've just been talking to a lovely lovely (sounding!) nanny, about a 2-day/week job. She already nannies for another family, also 2 days/week, and has done so for a year.

I just looked at one of the nanny tax calculator things, and it said that if we paid her 200/week, it'd cost us 223 if we were her first employer, but 284 if we are her second.

Is it normal for the second employer to swallow the WHOLE of the tax bill? And if it isn't, then how on earth does this get broached, given that it's obviously not in the first family's interests to pay any extra?

Well stupidly the Govt didn't exempt parents employing nannies from the small business subsidy for NI

There is a rough and ready way to work out the tax code, which apportions the personal allowance, but I'm not an accountant so really wouldn't want to explain it here but the number on your tax code refer to the amount you can earn before tax so 944 is £9440. Splitting the tax code is effectively splitting the personal allowance....if you have that information you may be able to work it out.

Traintracks - the point is if you agree a gross salary, whether or not you split the tax code is irrelevant. It is only important if you agree a net salary. The tax and NI (aside from employers NI) is a personal liability of the employee - it just happens to be deducted via PAYE and paid to HMRC. The sooner everyone moves on to think gross (like any other job) it will be easier!

I don't think that it is employers who want to talk net - as surely they want to know bottom line how much it will cost (which is gross)?

So do we blame agencies - some in my area talk gross but others still state nett

coming back to this - interesting comments!

I asked the question originally, because the nanny I was talking to me told me 'how much she wanted in her pocket at the end of the week'.

I can't pay her what she wants - I would, as someone up-thread said, be subsidising someone else's childcare, and working for a loss myself. She said that she'd do it 'undeclared', but that's not for me.

I feel quite bitter about the way it all works out.