Questions about employing a nanny...confusing

[KellyElly]

I am interviewing a few nannies for after school child care from September and it's all a bit of a minefield as I've had a child minder who sorted her own tax. I would be grateful if anyone could answer the following:

• Will I have to pay their tax if they are earning £90 per week? If I enter into a nanny share how would this work?

• Do I have to give them holidays if they are term time only? How do I work this out when they are only working for 37 weeks per year, three or four days per week for 2.5 hours per day?

• Sick pay?

• What is a reasonable notice period?

• Is it usual for them to want me to pay for their Ofsted registration?

• Does it have to be an hourly rate (i.e. if they are working under 2.5 hours per day do I have to pay 3)?

Thanks in advance.

Tax depends on whether it's their only job? They might be using their tax free allowance elsewhere.

Employees are entitled to 5.6weeks pro rata holiday pay.

Every one is entitled to SSP I think but someone more knowledgeable will come along.

2 weeks notice for the first year, 4-6 weeks notice period after that I think.

Yes you benefit from ofsted registration, they do not, so you should pay. They should pay for their own nanny insurance though.

I get paid to the nearest half hour so 2.5 hrs is fine.

Agree a gross salary. Then you deduct their taxes and pay it to HMRC. At £90 a week there would be no Employers National Insurance.

You can agree a daily rate, could agree an annual salary.

Holiday is 12.07% of working time. You could provide that as paid time at the end of each term. You cannot build the cost into the hourly/daily rate (rolled up pay).

ACAS has useful guides to holiday pay, sick pay and employment rights in general.

Thank you so much. I'm happy about the tax as was looking a very expensive option otherwise. She's a mum who has been on maternity leave so would be her only source of income, so I don;t think we would go anywhere near her tax free allowance. She's given me a rate of £23 per day to include petrol and childcare fees which seems pretty reasonable in London.

I employ someone term time only at an after school club. I specify that all holiday must bectaken out if term time abd use the governments holiday pay calculator to calculate the entitlement pro rata. I then pay it in a lump sum at the end if each term.

All pay rates are gross. At the moment she sighed a p46 to say it is her only job so doesn't pay tax. If that changes it will be deducted from her rate.

Thanks Picturesinthefirelight, that's really useful. Do you have an official contract with them to specify the holidays, pay etc and did you provide the p46?

If you go through a nanny tax company or already operate a PAYE scheme then the P46 is now an online New Starter Declaration.

I downloaded one from HMRC website but it was several years back. I don't operate a PAYE scheme as she is my only employee but I wirk in payroll for another company.

The contract is very simple & states hours to be worked, pay rate, holiday entitlement at 5.6 weeks pro rata all holiday to be taken out of term time.

Great, thank you for your help.

If you need someone Ofsted registered and you are only paying them 90 a week, then them asking you to pay towards the cost of registration I feel is acceptable. Do not pay for their insurance. ofsted registration benefits you, not the nanny. It is not a requirement for nannies to be registered, unlike childminders.