Self-employed nanny

[Tapestry12]

I have spoken to HMRC and they weren't particularly helpful.
My query is:

I want to stay in job and want to make employing me still attractive financially to family. They still need Childcare but less hours. Have until now been working 10 hours every week on same day, PAYE. £10 ph gross

So want to suggest to this 3rd family, that I work possibly 6.5 hours a week, on same day, could be less could be more. Depending on needs. At 13ph gross. Either me self-employed or PAYE. They pay me 6.5 hours every week and we do time sheet to keep track of hours worked. So that when they need me more they can see if I owe them hours.

Is this sensible or totally daft?

HMRC said they are only interested in receiving tax. No help what so ever.

The hours work as long as you live very near them, not so good if anyone moves house.
Between 9.15 and 1pm, who is responsible for the child - are the parents working locally? I would wonder if you were really on-call during that time.

According to HMRC website, your take home pay is what is left after PAYE and national insurance contributions. Do nannies not have to pay? Can't see any reference to this on HMRC website.

It's due to the salary being low, it is below the Lower Earnings Limit for Class 1 NICs. HMRC: NIC Rates

Income Tax would apply depending on the taxcode. In this case it may be a BR code, thus income tax on £100 a week is £20, assuming they are a lower rate tax payer.

As I see it, Tapestry12 has three employers, all of whom are currently paying them via PAYE. Job3 is the one in question and the day of work and hours are still going to be fixed, so I can't see how it could be done self employed and I can't see any advantage to Tapestry12 in doing so, as their employer currently does their tax deductions, provides payslips etc.

Here is what advantages you get fri a tax perspective OP: www.hmrc.gov.uk/incometax/relief-self-emp.htm

A nanny would not have much if anything in terms of allowable expenses.

Nannies being self employed has been discussed on here numerous times over the past years, please look through past message threads.

MrAnchovy (an accountant) has posted a lot about the subject in the past, use advanced search to search by user.

Tapestry12 - did you speak to HMRC Status Team?

I asked person at HMRC to check with some one she did, once again not helpful.
I would still pay tax at 20% and no NI as has already been said. Therefore, being employed for less than £149.00 a week is best way forward I now think.
I don't think the family have actually thought about child being ill or school holidays because I have done full days. Though probably if child ill mum or dad would stay home I think. Both parents work in London. Bless them one day I was ill, went into work but by 1 pm was so ill I asked for mum or dad to come home!!!!

I feel you are right to remain an employee.
Sounds as though the parents need to think about what it is they actually need. Many nannies, myself included, are paid at times when we have no children in our direct care. We do a few household chores, do some baking, go to the shops, go to the gym, whatever our employer lets us do.

This is not an unusual situation. I am sure many parents would like not to pay their nanny or childminder during times when the child is at pre-school but many parents still need someone on-call and providers are reluctant to have a drop in income during term time.

You can not be se for this family as it's regular work and they decide the hours and call the shots

I'm a se nanny but as I do temp emergancy and maturnity/night work

I decide the days and hours I can work and if I need a day off I take it obv giving them warning

Many employers want to cut down hours and this saving money esp if children at school but If you can't afford to do this and parents won't pay all day then you will need to look for another job

Many parents don't think what will happen if child is ill falls over and bangs head etc and need picking up asap. Yes it's rare and possibly be a few times a year but is their work flexible for them to drop everything and get child esp if work an hour or so away

Will they want you to covers school holidays? If so you could ask for the pay to be pre-rota over the year for the extra hours over the holidays.

Hi guys, just to give you an up-date.
I negotiated with family, I will now work 5.5 hours one day a week at rate of £13 gross.
Although it is quite a pay cut, I am happy because I really do like the family. The children are lovely, as are mum and dad.