Calculating tax for nanny with 2 jobs.

[OuchyMcOuch]

We're just working out what the total we'll be paying our nanny will be. She will work part time for us, and part time for another family (15 hrs a week with us, 15 hrs a week with the other family). Both jobs will pay below the threshold for tax, but together they will pay above the threshold.

Who is responsible for working out the tax? Dh says it would be up to the nanny to complete a self assessment, as it's unfair that we have to pay her tax as the pay we give her is below the threshold for tax. However, I'm sure I've read loads on here about families having to split the tax free allowance. Who's right?

You can't gross up as you do not know her taxcode. All you can do is offer a gross amount you feel is reasonable for doing the job.

You could work it out on BR taxcode but you will be paying over 15 gross, probably close to 16.

Sounds like she wants a set take home pay, yet you don't know how much tax allowance if any would be allocated to the job.

Spindelina has a good idea above. Maybe ask her what gross wage her current employers pay and match that.

I have just started a new job and tried to get the employer to agree to a gross wage but she wants to calculate it on net as it's only 22.5 hours I shall probably be below the tax threshold but liable for tax and insurance. Employer is using a nanny tax firm at my suggestion and they will work out the gross and I am going to try to get her to put that on the contract.

She did quiz me about whether I would be looking for a second job as it might affect her and I said I would probably have to. don't think she was happy but I will cross that bridge when I come to it.

I recently changed my profile on a nanny agency site to give a gross wage and immediately got a query asking me to state my net wage. It's not always the nanny who wants a net wage I wish it was made illegal for a net wage to be the starting point and every employer had to offer a gross wage

That's utterly bizarre behaviour sunshine. Surely your employer wants to keek the gross below the threshold?! So the net wage is irrelevant.

The only value that knowing a net figure has is comparing against other nannies who are talking in net terms, which they will only have to gross up for affordability anyway. It's utterly bonkers.

schadenfreude I'm totally with you I just think a lot of parents don't fully understand the tax system. It drives me round the bend.

I think the fact that a lot of jobs are part time also confuses the issue as the net comes within the nannies tax allowance anyway and they think they are getting one over on you. It sure is Bizarre! I was told by my last employer that the tax rebate I was sent in connection with a previous job should go to her because she ad instigated a net wage. Don't know where she got that idea! needless to say Mr taxman sent it to me and it went into my bank account.

I'm really going to stick to my guns in the future and insist on a gross wage.