After-school for 6hrs/week - do I need to pay NI / tax?

[Mandy21]

I'm considering swapping from an after-school club to using a childminder / nanny. They'll collect my children and bring them to my house for 3 hours per day, 2 days per week (so a total of 6hrs max a week). Term time only. Will be paying @ £9-10 per hour to the lady.

2 potential ladies in the frame - 1 is a student, we will be 1 of a number of families she helps out during her free afternoons / babysitting etc (she used to be a nursery nurse so has contacts with lots of other families).

2nd lady is effectively a full time childminder / nanny for another family but has 2 afternoons off per week, and is willing to help us out on those 2 afternoons.

Is the position (whether we have to pay tax / NI on top of that) different depending on who we choose? Any advice gratefully received.

Many thanks

They will both be working in your home, so they will both be nannies (childminders work in their own home). Someone else will be along in a minute who knows about employing people.

Yes for both as they both have other jobs so will be on a BR tax code. This is why you should avoid talking net with nannies and instead agree on a gross figure based on what you think is reasonable. Net is writing a blank cheque.

nomdeclavier - can you please add a little more explanation? I presume they'll both be standard rate tax payers?

Your first job gets the benefit of your full tax free allowance. That's code 944L at the moment and will probably change in April. Any other jobs all earnings are taxed at basic rate. Both candidates have other jobs so both candidates would be paying tax and NI on their full earnings.

If you've agreed to pay £9 or £10 net to them, you've agreed to add on top of that all the tax and NI. If they don't have another job that's £54 or £60/week, you don't have to operate payroll etc.

As soon as they have another job that puts your bill up to £54 or £60 plus their tax and NI on top so £68 (£11.25ph gross) or £75 (£12.50ph). In neither case would you pay employers NI because that's done job by job but you do have to operate payroll.

The student is unlikely to earn enough that they go over the threshold for student loans but agreeing a net salary there also means you take responsibility for that too.

Thank you Nom, thats really helpful. Many thanks