Self employed nanny - do you offer holiday pay?

[Contemplates]

Especially if not hired for very long (ie 1/2 day per week).

Just wondered what the expectation is and whether there is some hidden ethic that only insiders know of!

If you offer holiday pay then HMRC may question the self employed status. I'd offer a higher pay rate but no holiday pay (but I'm not a accountant etc etc )

Anyone who is self-employed sets their own terms and conditions. It's very difficult to be a self-employed nanny, because you will want her/him (not a substitute, as eg a plumber might send another plumber) and you want them at a set day/time (not eg 3 hours a week, when it suits the nanny.)

I think you need to check this with HMRC, could be you're one of several employers of this "self-employed" nanny, which gets difficult re tax.

Iirc from when we had a nanny (now about 6-7 years ago) it's not legal to have a self-employed nanny. Though things might have changed?

The fee they charge should include provision for not earning when they take a break. They set their terms of business, so you need to do whatever that says. If they don't work, they don't get paid. You could pay a bonus at xmas perhaps.

Just talked to HMRC about it and they said its fine because we're not the main employer and she is obviously free to take on alternative work during hours not spent with me etc.

Just that I have to receive an invoice with her national insurance and tax reference number on it to prove to HMRC that I have done everything correctly should they check.

Seems that I have to consider holidays as a bonus payment because of not being employed by me.

Is recheck here as I was told that I had to be employed by the family I was doing 1/2 days for!

I would recheck that with HMRC. Nannies do not tick most of the boxes in the SE checklist. You require them personally to do tasks that you set out at a time and place of your choosing. Even in a FT (37.5 hours) job there is time to take on additional work. It doesn't change the emolument status of the person.

We've always had to employ nannies who work 1-2 days a week.

One of our nannies actually wanted to become self-employed and it took a three way conversation with HMRC to convince he she couldn't.

Unless your new nanny is working ad hoc hours, I don't see how she can be SE

Do you have her regular hours every week or ad hoc? It would need to be the latter for her to be self employed.

Also doubt that she is self-employed, as you require her personal services for set times each week. You might not be the main employer, but still likely to have to pay tax etc.

I wonder if it makes a difference that she is from an agency?

I'd be surprised if a bonafide agency would also get it wrong as well as HMRC?

On the HMRC website self employment list a nanny usually isn't counted as SE, but there are exceptions and I think an agency was listed as one.

As in she's from a recruitment agency or she's from an agency which offers an employment service so she's employed by them. They do exist although they're rare and you would be paying them an all in fee rather than the nanny. A nanny recruitment agency should be advising you that you are the nanny's employer or they aren't doing their job correctly.

The usual exceptions are nannies in continuous temp employment like maternity nurses and those who do very as hoc work.

It depends on the agency as to whether they have correct info or not. My local council have a matching service and that tell nannies to be self employed, I have tried to correct them on the issue but they still say it. I even asked my local hmrc office to call them as it was worrying how not seriously they were taking it.

Probably my best bet is to write I HMRC and keep their written reply. That way they can't 'get' me further down the line, as there is nothing else I can do really.

Yes, write to the Status Team. Details here