Help with logistics of employing a part-time nanny

[Charly3]

Hi, I will need a part-time nanny, 16.5 hours a week. I have met somebody who is an experienced nanny but currently childminding. She seemed very pleasant, sensible etc. My instinct is that she would be nice for the children and a good communicator (for me). We would be her first family and she will try to find another family to work around our hours.

But now for the logistics, I don't know where to start!

What salary to offer? She wants it Net. £9 per hour or is this too much (Kent). 2 primary age daughters before/after school; one baby all day.

She says she can't use her car, due to having to put business use and paying for petrol in her car, and would want our car. But our cars are at the station when we are working (we are in a rural area). ?? Could leave her to use the bus if she goes out?? Certainly not worth us buying a new car for 1.5 days a week. Any advice?

Is there a chance I can work out the NI and Tax using HMRC's PAYE tools? Anyone managed this for a part-time nanny?

Never employed a nanny before, where can I find a standard contract to copy?

Any other advice greatly appreciated. This is all very new!

Do not agree Net, you can't calculate salary using HMRC PAYE Tools you will have to use a payroll company (or buy Sage Payroll). It is also a bit like writing a blank cheque as you do not know how much a Net salary will cost you, it can very each time payroll is done.

Agree a gross salary around 24% higher. That may then be near the figure they want but it will change as taxcodes do vary.

Why can't they use their car? You could offer 45p per mile for mileage expenses (max 10,000 miles per year before that becomes taxable).

There may be issues being a childminder and nanny, they will need to look at insurance policy (public liability), registration with childcare regulator (if you need to use childcare vouchers / tax credits). Should be easy to sort out but will need looking into.

Nannynick that is really helpful. If I insist on Gross does that mean I pay her gross, and she has to sort out all her tax/NI contributions?

No you are still responsible or paying her tax and ni on her behalf to the tax man, but by agreeing gross that is the amount you always pay, never mind any changes to the tax codes the government may do which would change the next amount slightly.

As eeyore says you are the employer, you deduct employee income tax and national insurance from the gross wage and pay that to HMRC. You pay Employers NI.

So your basic cost is

gross salary + employers NI

Nannies taxcode can change and it makes no difference to your basic cost, it changes what nanny gets as take home pay.

I think if she's only with you part time you will have to insist she either uses her own car or relies on public transport. Incidentally, I don't know whether it's different for nannies but as a cm I added business class to my car insurance last year & it cost me a £20 admin fee (& I've just renewed fully comp for £260 which was less than my regular policy last year). I would expect you to provide car seats but a car for 1.5 days is ridiculous. Does she need a car for the school run? If not then surely she can cope without for such a short amount of time.

As a nanny my car insurance was the same as Phoebe - I needed to add business insurance part way through a year and there was no additional premium, just an admin cost for admin costs and updated certificate. I drive a 2 year old car and my fully comp insurance (including a 6 year old car in previous years) has never been more than £300.

The school is about 25 metres down the road. The only thing she needs a car for is if she was to take the baby to something like a playgroup during the day, although even then it's possible she could reach one on the bus. Bus is £6 return trip though, so it's not a cheap option particularly.
Thanks for your comments about paying gross, NI etc - very helpful.

As a nanny my car insurance was the same as Phoebe - I needed to add business insurance part way through a year and there was no additional premium, just an admin cost for admin costs and updated certificate. I drive a 2 year old car and my fully comp insurance (including a 6 year old car in previous years) has never been more than £300.

Ooops

I blame the for the double wording and double post!

Is there anything in the area to which she can walk, such as woodland, duckpond? Babies just like getting out and about, they don't need a baby group.

No increase in insurance premiums for me either. I think insurance companies view it as a parent driving their own children around, it's no more risky driving other people's children around than your own. Iykwim?

deg agree gross - is she doing 2 8ish hour days? and if looking for another family on other days then you really run the risk of having huge tax bill if you agree nett

im in kent, what part are you?

she could use her car and have business in put on (some are free like mine, others maybe £20/40 per year) which employers normally pay, and you would pay her 45p per mile

could you and dh go to station together in am, and she pick you up - thats what i do (i wont use my car, have always had a work car)

could you take her car to station and she use yours?

Thanks these are really good ideas. I will have a re-think and recalculation and then be clearer on what we need. A second nanny has been in touch so maybe if I think more clearly about our needs, we can find someone to suit rather than having to compromise a lot.

I prefer gross but my last PT job paid gross, employer worked it out herself and my Pay plus Tax and Insurance was the same every week so not as problematic as some make it out to be. employer provided P60s and P45 when I left and was better off herself as when my Tax allowance went up she benefitted not me.

Yes I definitely do prefer Gross but expect it to reflect the going rate take home pay.