I've found a nanny but I have lots of questions! Help please!

[AppleSnapple]

Hi,
I have posted before about my search for childcare- i have a school going 6yr old and nursery going 1 yr old... Currently 6yo goes to breakfast club/school/childminder and 2yo goes to nursery. 6yo doesn't like childminder and is generally unhappy so have decided to hire a nanny. To cut down on expense, I've decided to keep ds2 in nursery 2 mornings a week with nanny collecting at 1 and minding til 6, and collecting ds1 from school at 3 and minding til 6. This is for 2 days a week. Despite the fact that this isn't many hours, and a bit awkward, I've found someone lovely who doesn't seem fazed by this! So... I interviewed her and now I have lots of questions!

Firstly- she calls herself a nanny but isn't trained as one (but has lots of childcare experience) this isn't an issue for me, but she is charging what is I suppose top rate for nannies in the area (as far as I can see) of £10/hr - I presume this is gross (I know I should've, and will ask!) rather than net, and she should pay own tax, NI contributions etc.??

I have heard about nanny payroll sites- any recommendations?

Also- what are her, or my, statutory rights re her going off sick etc? I presume she needs a med3 and I pay statutory sick pay?

Are (nanny's) holidays paid or unpaid?

Are there any tax benefits for me in employing her given that I am already a business owner/employer?

I hope you don't mind me asking but from reading these threads you all seem v knowledgable and I'm feeling a bit foolish and underprepared atm! I'm in the process of collecting her references now, so far so glowing, and we'll make our final decision then.

Anyway thanks if you've got this far, all opinions and info gratefully accepted!

To cut down on expense, I've decided to keep ds2 in nursery 2 mornings a week with nanny collecting at 1 and minding til 6, and collecting ds1 from school at 3 and minding til 6. This is for 2 days a week.

So two days a week it is 5 hours per day, so total so far of 10 hours per week.

What about other days? What about school holidays? What hours will they do then?

she is charging what is I suppose top rate for nannies in the area (as far as I can see) of £10/hr

She does not charge, you set the salary. She wants to earn £10 per hour. That may or may not be reasonable depending on your area. You do tend to pay more for experience, so it looks reasonable especially given the short hours.

I presume this is gross (I know I should've, and will ask!) rather than net

You must not assume... certainly do confirm that you are offering the job at £10 gross per hour.

and she should pay own tax, NI contributions etc.??

Why? You are offering a job, you are the employer, you are dictating what they do and when they do it.

I have heard about nanny payroll sites- any recommendations?
My employer has been using www.payefornannies.co.uk for over 6 years without an issue, so try them... they start from £140 a year I think.

Also- what are her, or my, statutory rights re her going off sick etc? I presume she needs a med3 and I pay statutory sick pay?

Not sure what a med3 is... what is it?

Nannies will often get Statutory Sick Pay only, your payroll company can assist with the claiming for that. Some nannies do like to have a certain number of sick days written into contract, so you could provide a small number if you like.

Are (nanny's) holidays paid or unpaid?

Employees get a minimum of 5.6 weeks paid holiday.

Need some more information to start working out what that would be, such as hours worked on other days (or are they just doing 10 hours a week for you), if it is term time only and if so then how long your school academic year is in your area (they vary, 38-40 weeks typical). Then if it is term time only, would they be able to take holiday during term time or only during school holidays?

Are there any tax benefits for me in employing her given that I am already a business owner/employer?

You would be their employer in your own right, not in your business. So you can't claim it as a cost against the business.

You seem to be a little confused about if your nanny will be your employee or not. So that is the first thing to sort out - these two days are of fixed hours, fixed days of the week and you decide what the nanny does and may even decide how they do it, so they are an Employee and you are responsible for deducting their income tax, national insurance and paying Employers national insurance. Taxes will depend on the salary and the individuals tax situation, thus important to agree a Gross salary. It might be their only income and it might be salary of under £111 a week so you may not need to register as an employer.

Thanks, nannynick- you're right, I am confused! Have done some more reading (thanks for the payroll site too, v informative).

Previously I had thought that it was possible for nannies to be self employed, therefore paid in gross terms and then they were individually responsible for paying tax, NI contribs etc. It seems that's not the case- this is all new to me so I'm just getting my head around it.

So current plan is to employ her 10 hours per week term time (although she will cover the full day if either boy is sick and can't attend usual setting) and 20 hours per week school hol time.

Btw a med3 is just the form that a gp gives you to entitle you to claim ssp.

Thanks again and sorry for all the questions, it's a steep learning curve!

By the way- she does one day per week elsewhere but is paid gross with no formal arrangement...

Don't get involved with what she may do elsewhere.

When they accept the job, they will either give you a P45 or they will need to complete a Starter Checklist. That will then determine the starting taxcode and HMRC may change it at anytime by sending you and them a tax coding notice.

Seek advice from payroll company. As you have variable hours there will be complications with things like pay, holiday entitlement, so you need help. Holiday entitlement I think would be done on accrual method, that is on hours worked. It may be that an average of the past 12 weeks is used to determine the hours of a working day when they take holiday. Guide from ACAS on Holiday Pay (pdf).

You have been so helpful, nannynick. Thank you, it's very much appreciated!