About to embark on using childcare!

[cedricdoris1]

Hi, I'm taking up a full time term time only job 9-5pm as of September. My two children are at school full time and have had me to take them to and pick them up from school all their lives so far. I have decided that my preferred option is to have a live out part time term time only ofsted registered nanny to collect them from school every day and bring them home/go to the park/go to the beach etc., totalling approximately 10 hours per week with the odd bit of a later evening when I have to work late once or twice a term. I am a single parent and thus qualify for child tax credits, hence the ofsted registration preference. I have met a few potential nannies, one of whom seems just right for me and my children. She is new to nannying, currently undertaking paediatric first aid, DBS clearance, ofsted registration etc., etc., etc., and she wants to go ahead on a self-employed basis. I'd really like some advice on: proposed self-employed hourly rate, whether I have to factor in (paid?) holiday, what sort of car insurance would she need to have, do I have to change my home insurance, can I have a self-employed nanny as she will look for morning work and has her own business anyway, do I have to give petty cash for little treats like ice cream/afterschool snacks, sick pay/pension contributions etc. Any advice very gratefully received. Many thanks.

Don't do it. Why would they want to be self employed? Whilst it is short hours, it is regular work. You are looking at having someone do around 38 weeks (plus a bit extra in terms of holiday entitlement), with the working hours dictated by you. You don't want to be in a situation where they don't turn up, or they send someone else. Employ them, there will be hardly any employers national insurance, as it is based on the salary.

Agree. Hmrc are unlikely to see this as SE work. You need to employ her.

Self employed people don't get paid holiday, or SSP/sick pay.
They dictate their terms of business, so the fee they charge reflects that they are only paid when they do work.

If you really want this person and if you really do not think you are providing them with a job but that they are instead providing you with a service, then contact HMRC and request a status decision.

Running a business, having other work self employed does not automatically make someone self employed when doing other work, there are various factors taken into account. HMRC decides, not you or them.

This does not sound like ad-hoc babysitting, it sounds far more like a permanent termtime job.

Petty cash - would you be buying things for your children after school if you were home? If you went to a playground and there was icecream available, would you on occasion buy it? Would you buy a drink if you did not have enough water with you?

Yes - some petty cash is needed, though it may not be much.

Ok, many thanks for all your advice, I shall talk to HMRC and get their decision and go from there. :-)

Probably the reason why she wants to be SE is because it's only for 10hrs work, and she will have to find other work and so if she is SE she will avoid being taxed boat loads.

I have very limited knowledge when it comes to what's allowed with HMRC, so yes definitely a good idea to call them first, but just be aware when you are only offering a small contract, any potential nannies will want to make it as appealing to themselves as possible, being SE may just be a way to do this.

Would a CM work better for you?

Surely it would make no difference over all tax wise. Income tax is done on all earnings in a tax year, PAYE can result in over/under payments but their new system should be making that better and if someone is SE for other things, such as their own business, they would be completing self assessment anyway, which will calculate taking the PAYE job into account.

In other professions there are zero hour contracts, it does not make those people not an employee, so number of hours I don't makes a difference unless it is someones Only income and less than a certain amount per week or per month.

Get advice from HMRC, its up to them.

You may well be right Cindy- I just remember having two jobs a couple of years ago, and because of that I was taxed almost 20% i only made £15 extra a week from having two jobs!! It was crazy. So when I read this post, that was my first thought.

But yes HRMC can give you definite answers x