Payroll company recommendation for nanny

[aliceinwonderland56]

I've found some quite old threads for payroll companies which are recommended but would like to hear up to date recommendations if anyone would mind sharing them please.

Am I also right in saying that it is now advised to negotiate a gross wage rather than net wage with your Nanny? I found this information on payefornannies.co.uk so may not be correct.

Thanks in advance

I use TaxNanny. £100 per year and have had no problems at all. They seem to work round the clock!

Yes, gross pay is the way forward.

We use the company you mention, they've been fine so far, all has worked smoothly. and they were happy to give us some advice before we signed up with them.

Yes agreeing a gross wage is absolutely recommended. That way you don't have to readjust the wage every time the tax rules change or the nanny's tax position changes (eg if they take on another job as well). Basically it means their tax position is their issue not yours. If nanny mentions a net wage then you can use online calculators to work out the gross equivalent and offer them that.

Payefornannies, not had any issues. NannyTax if you want the things they offer beyond the basic payroll.

Yes, agree a gross wage. You don't want to be paying someones student loan for them!

Could I also ask about fuel allowance? We will be asking the nanny to fill in mileage sheets so that we can work out what to pay her each week. Is this ok to give cash in hand or do we need to keep a receipt other than the mileage sheet?

Another vote for payefornannies, they are great and much cheaper than nannytax.

Mileage - keep a note of how much and paying in cash is fine, I give it to my nanny in cash at the end of the month and she fills the car up on her way home! HMRC will want to know an approximate amount but no tax to pay unless you give her more than 45p a mile or more than a certain amount in total (think it is £10,000!).

You need to know the mileage during the year plus the amount paid. The payroll company will get you to fill in a form with that detail on it. As long as it is less than 10,000 miles and paid a max of 45p per mile, it is not taxable.

Probably wise to pay using bank transfer or cheque, just so that there is a record of it being paid. Otherwise your nanny could say they have not had the payment and you couldn't prove you did give it to them.

An agency told me if we complete a few weeks mileage sheets at the start, see what the average mileage is and then just regularly pay that average amount instead of continually filling in sheets. Would that be ok or would MHRC ever ask to see full records?

HMRC* even!

WE also use payefornannies they are great

our nanny emailsme a sreadsheet/word doc/scanned handwritten scribble every month and I pay based on that, I store the emails and then easy when I need to refer to them down the line

Hope a payroll agency did not tell you that AliceInWonderland.

HMRC may well not check but why take the risk? Keeping a bit of paper, keeping emails, is not very hard.

Not sure why a nanny would accept mileage being averaged. Suppose it may work in their favour sometimes but it won't always.

No not a payroll agnecy, it was an agency we were trying to find a Nanny through (who we didn't use as she didn't listen to our requirements AT ALL). I thought it sounded wrong which is why I thought best to ask.

Anyone can run a nanny agency alas, no regulation in England (some regulation in Scotland, wonder if agencies are better up there?)

So it would seem! Thank for your help Cindy34

Aliceinwonderland if you pay a set amount per month it is taxable

My Friend gets paid average miles. They did it for 8 weeks an then took the average - to me seems the easiest way if both nanny and parent happy with that

I've used my car for odd temp jobs and it's tiring keep mileage watching as one wanted every mile counted for (fair enough to a certain extent) and queried an extra 3 miles (was diversion coz of roadworks) and she knew school to home was 4miles round journey - park was mile there and back etc

Do nannies jot down every destination ie school 4 park 1 friends house for play 3 or say I did 13 miles mon 8 tue etc etc as easier to look at mileage when arrive at work and before go home look again and write the difference

Yes, my mileage log has enteries like:

School, swimming, school, playground.

So it includes the destinations visited that day.
It does not say Home to School to Swiiming to Home to School to Playground to home.
Maybe it should but the important thing is that it is a record of the miles claimed.

Would HMRC check? They might but probably not.

As you say blondes, mileage can change due to road closures.

It does go on what start and end mileage readings are on car, so no different to how you do it but that is not the same as averaging and paying the average amount each week/month.