What is the gross wage?

[SpecialJK]

Hi, I'm interviewing my first nanny tomorrow. She's saying that the equivalent gross wage to get to £10 net would be £12.50. Is that correct?

I will be employing her 50% of her hours so will expect her to split her tax code equally between employers

Agree gross not net. There are tax calculators that you can use to work out the gross of £10 net, however she may not be able to split her tax code and it'll be you paying the difference, not her, whereas if you agree gross it works out.

This is the first year I've had HMRC split my tax code having worked for two employers for the third tax year now, when they got it wrong (a tax code for an old employer and not my newer one) they changed my codes to BR in one and 1000L in the other (or whatever the new full code is). My employers both pay me by gross, so it doesn't effect the amount that comes out of their pockets, only mine.

I was planning on agreeing a gross,however I can't find a tax calculator that tells me what 12.50 gross is in terms of net

Try this one

www.mranchovy.com/calc/

it is around that amount, but depends on how many hours you employ her

ie if a 3 day job for 10hrs aday ie 30 a week, nett would be £10.39

if a 5 day job for 10hrs ie 50 a week £9.63 and if 12hrs day ie 60hr week then £9.44 nett

if you did other way round then £10nett at 60hrs would be £13.32gross

ie gross figure grows the more hours you do if you quote nett

if you quote gross then the less hours you do the more an hour the nanny earns nett, but is still the same cost to you iyswim

have a jiggle with this mr a's fab calculator

Great thanks! That calculator is fab.

She would be working 2 days per week, 11 hours per day. According to the calculator that's only £10.42 gross, which seems quite different

What tax code are you using?

1000L would allocate the entire personal allowance to your job. Where as BR would allocate none of it to your job.
A 50/50 split (if HMRC were to do that, which I am not sure they would) may use a code like 500L. Problem is, you don't know what the tax code will be until HMRC tell you.

What are you actually trying to do? If they want a specific take home pay, then you can't do that by agreeing a gross salary. You would have to agree net and have a payroll company work it out every time they are paid.

How is 22 hours a week "50% of her hours", what do you mean by that? If she works 2 days for someone else, then that leaves another 3 days on which she could work.
If she already has another job, then that job may have taken the full tax allowance, so you would get allocated BR code.

She could ask HMRC to split the code but HMRC may say they won't, the other employer may not be happy about it (if they agreed a Net salary their costs may go up).

If you used 500L, 2 days per week, 22 hours per week, 10 net per hour, then the calc produces 12.20

So if you are picking a gross salary to offer, then something above 12 an hour may well be appropriate.

If they want 12.50 gross an hour, would you offer that?

Sounds about right. Be aware that HMRC don't like splitting tax codes, my nanny splits hers between me and her other employer but she has to ring up every April to get them to do it again and they are increasingly unkeen so make sure you agree gross. Every hour worked reduces the proportion of hours in the tax free allowance and therefore marginally increases the gross pay needed to get the same net pay.