Nannies and Student Loan

[Treetops0909]

Are there many nannies or employers of nannies with student loans? Pre 2012 graduation.

I am due to start a new job. Salary is far higher than I've previously earnt so now quite a lot above the student loan repayment threshold. I have previously always been a SE maternity nurse or nanny temping. I haven't paid back any loan.

New family has offered X Weekly salary NET (yes I know many will roll eyes and claim must be GROSS) however they seem unaware of this. I had forgotten about my loan so Will need to inform them ASAP. I have worked out what I will be paid gross, and how I need them to state gross in the contract otherwise they foot the bill of repayments. Is this correct?

I will be earning less net, due to the student loan being deducted (fine) and I am correct in asking for. GROSS SALARY or not? How will it work with overtime if being paid a net amount per hour?

My other option is to pay my student loan off now in full (£23k) losing half my house deposit savings. Financial advisors have told me not to. As a high earner however will I be paying more interest on the loan for say the next 3-5years as a full time nanny (plan to marry and have children in say 5 yrs) so will then probably drop back below the repayment threshold.

Many thanks

Ps: May move this to money matters.

Is it a full time job, say 50+ hours a week? If so, you have done the Net to Gross calc using 1000L taxcode, so the gross figure you agree should br fine, agree the annual gross salary and the overtime rate, both as Gross.

Deductions from salary are then made from gross salary so the deductions do not change how much it costs the parents overall.

Not sure how student loan deductions work in terms of earning overtime. Have you found any info about if it is a percentage of salary?

The monthly student loan threshold is £1,409 (or £325 per week).
Your repayments are calculated at 9% of your taxable pay above this threshold on a monthly (or weekly) basis. Any overtime/bonuses etc. would increase your taxable pay and mean a higher reapayment for that month/week.

It is definitely always best to agree a gross salary. Technically, if it's agreed net, your Employer is liable to meet your loan repayments on top of your net pay and their PAYE obligations. I don't think many employers would be very happy with that arrangement!

If you want any help with calculating a gross equivalent please feel free to drop me a PM.

Hope that's helpful.

Many thanks

Of course I do not expect my employers to pay my student loan, therefore I will insist they pay the gross weekly and make the deductions. I think I have worked out correctly using the online calculator but will also email you ClaireZest

Many thanks