Nanny fuel costs and how it's paid

[aliceinwonderland56]

We are hoping to hire a Nanny while I return to studying in a healthcare profession. I will receive a very limited amount childcare bursary (she has to be ofsted registered) and to keep things simple we were hoping to pay a flat rate of fuel allowance. Am I right in that this has to be included in the wages and be taxed if we do that, but if it's paid per mile it's paid cash? We are looking at flat rate as we just can't afford excessive mileage on a student bursary, it will be extremely hard to pay for this all as it is but with four kids and me doing shifts there's little other option for us childcare wise. But at the same time, I want to make sure we pay the nanny fairly and at the correct rate, as well as pay the tax correctly.

I'd also be interested to hear what people pay their ofsted registered Nanny around the Beds/Bucks/Northants area of the UK to see if we are pitching the post at the right wage (£400 net per week inc fuel).

Thank you

No idea tax wise for flat rate, best ask payroll provider.
The mileage would still need to be accounted for so why not do per mile but impose a monthly limit?
For mileage you can offer up to 45p per mile for the first 10,000 work miles per year without it being a taxable benefit. I wonder if flat rate is the same.

For salary, need to know hours. 400 I would say is good for a 40hr week but low for a 60hr week.
Agree gross salary then any changes in nannies personal tax situation will not change how much you pay.

It's very easy, I have a bit of paper ins drawer, she writes down her miles and I pay her cash at the end of each month, which she prefers. You can do it by bank transfer but the key is that it is per mile not a flat rate. HMRC will need to know roughly how mich you've paid each tax year so keep a record

I think it will be easier and fairer for both parties if you just pay for what you use.

You can set a limit on the amount of driving that the nanny can do.