Cost of nanny (live out)

[hayesgirl]

I have 3 kiddies having recently had twins. I will be going back to work in jan/feb and think that a nanny would be the most convenient and cost effective childcare option.

I have a few people interested in the position but I am not sure what would be considered a reasonable hourly rate to pay.

Do any of you have a nanny? What do you pay and what (if anything) do you get back through tax credits?

You need an ofsted registered nanny to get money back through tax credits or a childcare payment scheme thing. I only realised that the first was an option when my boss needed my ofsted cert to prove that she had an ofsted registered nanny to the tax office a few weeks back!

Pay depends on where in the country you are and specific needs. If you want somebody with twins experience you may expect to pay a slightly higher rate, the same as if you want somebody with 5+yrs experience. I'm based near a SE commuter city and get £10.50ph gross, which is the upper end of mid-range wage I think. It varies from £8ph gross to £13ph gross I think here. Though I rarely see anything more than £11ph gross advertised!

Whereabouts in the country are you?

Very rough cost of a nanny to the employer is 30-40,000 a year but it hugely depends on various things:

The hours of work, the days, thus total hours per week.
The location (cities are usually higher salary areas than rural).
The cost of activities/outings.

Far more info is needed to be able to work out what sort of salary you may need to pay and your total childcare cost (for tax credits purposes) and your total real childcare cost (as tax credits can not be used towards all the costs).

I live in Yorkshire. We're only after a part time nanny 3 days per week 8am -6pm both term time and non term time. I was already aware of the Ofsted requirement.

I will need them to look after my twins who will be less than a year old and my oldest who is 3 and goes to nursery every morning and will be starting school next year.

Work on 10 gross an hour, though do look at local job ads to get a feel for what others offer.

15643 gross salary
1061 employers NI
150 payroll admin
700 activity cost (roughly 5 per working day. Use a figure you feel is reasonable)
If nanny is to use their own car, then you will have mileage payments.

So maybe call it 18,000 cost to you as the employer.

As it is part-time, do discuss salary in Gross, not Net. You don't want any changes to their tax code resulting in you paying more money.

job search results, yorkshire, live-out, part-time

Looking at the job search, you may be able to offer 8.50-9 gross and see who you get applying. Budget wise I would plan for 10, so you have room for payrise later on.

Tax credits may pay up to 70% of a fixed amount, think it is max £300, so if cost is £300 a week, then £240 a week. No idea though how they determine what percentage you get. Don't think activity or mileage costs can be put in the childcare costs claim to tax credits, but the employers NI and payroll cost can be.

Does not sound quite right Cindy but only in the maths. 70% of £300 would be £210.

HMRC WTC5 is the booklet to read with regard to tax credits towards childcare costs.

That's great thanks so much x