It is not many hours so the pay level may need to be quite high to attract anyone to the job. See if you can see what other jobs are out there... is your offer going to be attractive? NannyJob Job Search: Kent, Live Out, Part Time
Think about what happens if:
- school/pre-school closed, such as boiler breakdown, snow day, inset day
- a child has a mild illness, so too ill to go to school/pre-school but not so ill you feel you need to take a day off work.
- school holidays, is no childcare needed then? Is this a term-time only job?
We were thinking £10 per hours for the two of them?
What if one went to a friends house to play... then it's only one child... would you drop the pay? Nannies are paid based on care of all the children in the family, not per child, so try not to think along the lines of £10 per hour for care of two children but to instead think about £10 per hour for care of however many children you have at the time.
the potential nanny also works full time 9-3 at dd2 s preschool
So they won't be in a position to cover any time between 9 and 3 that you may need, such as child being ill, school boiler stopping working (or sewers flooding like I had at the school I collect from last year). So consider what your backup childcare will be.
What's bothering me is the tax. It works out as £90 per week so what happens with tax and NI? Do I still have to pay any?
You will need to register as an employer. This is due to your employee already having a job, so under your employment they may not have any tax-free allowance allocated. You will be the secondary employer, so make sure you agree GROSS salary, not Net (take home).
HMRC will start you off using a certain taxcode and may then change that during the financial year. The worst case code is BR, which will mean that there is no personal tax allowance allocated to the job and thus income tax will apply. MrAnchovy's PAYE Calculator is very useful to have a play with. Make sure you set the hours per week, days per week and taxcode. Then enter in the annual, monthly, weekly or hourly gross pay and click calculate.
At the pay figure you are considering there is no employers NI. So you do not have that cost on top of the gross salary. You will however need to produce a payslip every time they are paid and you will need to deduct income tax. At that pay level employee national insurance is zero.
You will need to factor in holiday pay. This would be 12.07% of the time worked if they are term-time only. It would be 5.6 weeks as a minimum if they are employed all year round... it may be best to calculate in hours if the hours worked during school holidays is different to school term time.
Consider using a nanny payroll company if taxation confuses you. Some will also offer legal advice about employment situations. Annual cost for monthly payslips varys... £135 per year admin cost would get you the basic service you would need. They will remind you when to pay HMRC the income tax (and any other deductions) and remind you how to pay - payments are usually made every 3 months. Examples of payroll providers: PAYEforNannies, NannyTax, NannyPAYE. Compare the cost vs what services are provided in that annual cost.