Help or advice for novice

[Pandfsmum]

I’m on the verge of hiring a part time Nanny. I’ve never done this before and want to make sure that I avoid any potential issues.

My plan is as follows…. Any help on this greatly appreciated

I’ve advertised.

I will interview.

I will set up payment through HMRC for tax and NI.

I will repay expenses through her payslip with receipt’s.

I notice that my house insurance might cover liability… do I need additional liability insurance?

I’d planned to do an enhanced DBS check, and take 3 references…. Are there any other checks I can do?

I am going to draw up a contract.

I guess I salary the person and then pay monthly, with overtime being paid in arrears. This is a term time only position, how do I calculate holiday?

This all feels a bit scary, as we currently use an awesome child minder, but the children prefer to come home after school and I get that…. Any advice on the process greatly appreciated.

Don't expect receipts for everything. It can be easier to have a weekly kitty, set amount so a budget they need to keep within or spend less one week, spend more the next.

Check the household insurance policy, it should be clear if it does cover Employer Liability for domestic employee.

How will you get a DBS check?
What if someone can't provide 3 verbal references? My last nanny job was over 6 years ago, still have their contact detail. One previous to that was 9 years ago, don't think I know where they live now.

Have you put salary in the advert? Agree a gross salary.

How many weeks is term time? It does vary between schools.

Will you let nanny take any annual leave during term time, or will it only be possible (except in extreme circumstances like for a funeral) during school holidays?

I would do holiday for term-time only worker as 12.07% of working time.

5.6 weeks’ holiday, divided by 46.4 weeks (being 52 weeks – 5.6 weeks) multiplied by 100 = 12.07%

Whilst on holiday you don’t accrue holiday, so the calculation excludes 5.6 weeks, so holiday is accrued on the remaining 46.4 weeks.

Understand that? Perhaps an example would help.

Lets say a nanny works 10 hours a day, 5 days a week thus 50 hours a week and works 36 weeks a year.

36 weeks x 50 hours = 1800 hours

1800 hours x 12.07% = 217.3 hours

217.3 hours / 10 = 21.73 days

This could then be rounded up to give 22 days holiday. You are permitted to round holiday up but you cannot round it down.

There are very few bank holidays during term time. They do occur though. I would say be generous if possible and give those off in addition to annual leave, though legally you can insist they are taken off as part of annual leave.

More advice about Holiday Pay from ACAS

Do you need to use Childcare Vouchers, Tax Credits Childcare Element or intend to use the new Tax-Free Childcare Scheme from Sept 2015?

Are you in England, Scotland, Wales, Northern Ireland, elsewhere? Helps to know country as some things vary. For example, in England Ofsted registers nannies so they can accept Childcare Vouchers.

So far have assumed you are in England. Please do say if you are elsewhere.

Nanny may have written references dating back many years - can be handy for getting a feel for how long they have been working with children and voluntary work with children.

Check their right to work in the UK. Check passport/photo ID if possible.
Gov.uk: Check Right to Work

Check their home location on a map. Consider if you feel the commute to you is reasonable distance.

Do you need a car driver with own car?

If nanny is doing 20 hours a week, 36 weeks per year:

Holiday Entitlement
20 hours x 36 weeks = 720 hours
12.07% = 86.904 hours
So add 720 to 86.904 (round up to 87) = 807 hours

So pay would be for:
20 hours x 36 weeks = 720 hours plus holiday entitlement of 87 hours.

Rolled up pay is not permitted (so hourly rate can not include the holiday element).

So if £11 gross per hour is the agreed rate, then it is
£11 x 807 = £8877
You cannot do £8877 / 720 = £12.33 and pay that as an hourly rate as that would be rolled-up pay.

The pay could be split over 12 months, though you must keep track of hours actually worked, as if they leave part way through a year there may be an overpayment.

Thanks for that..... I think I understand!

I am going to use an umbrella company for DBS check.

I guess I'm happy to accept 3 references, not necessarily from nannying, personal would be ok if there is a good explanation.

We are in the uk. Will give all the points around employment a good think.

Do you mean you are in England (as you are mentioning DBS). If you were in Scotland/Wales/NI then things are a little different.