Self-employed nanny - how does this work please?

[honeyistoosweet]

Just sifting through Gumtree responses and starting to interview. Found a someone I like the sound of and she says she is self-employed. I haven't come across this before. I did the PAYE for my prevous nanny and expected to do the same for the new one. Does anyone have any experience of this - what do I need to be aware of/ look out for? Is this better for the nanny? How do we organise salary - sorry terrible at this side of things..

TIA.

If she is working set days /hours for you she can't be self employed. You will need to do as you did previously and run paye for her. You are right in thinking nannys need to be paid that way, if you pay her as self employed it will be you paying the hrmc fine when they find out. There are no benefits to her in being self employed apart from being able to say she isn't working on a certain day etc, she would get no paid holiday or sick pay if self employed.

Even though she says she is self employed in her application, please if you do decide she is the one for you tell her you will only employ her on paye and agree a gross wage with her.

Ditto as Eeyore says

Even if she is self employed in another capacity, for example as a maternity nanny or temporary nanny if she is working for you on set days as a regular nanny then you need to operate payee. YOU will be the one who is fined if it comes out not the nanny.

I was given permission by HMRC to work as a self-employed nanny when I was working for a number of different families, mostly on an ad-hoc basis .

But it can't be done otherwise; and as others have pointed out it's you, not the nanny, who will take the rap if HMRC find out. And it's serious; a website I came across when I was researching it (before asking HMRC) described being discovered not to have been employing your nanny as 'career wreckingly bad'.

No advantage for the nanny, so would raise alarm bells as to why they would want to be self employed. This assumes you are offering a job, not just wanting someone ad-hoc (when they decide they want to do things for you).

UK Border agency used to have a guide for employers on checking eligibility to work in UK. Try to fond that, may be useful for making sure you see the correct ID documents when interviewing people.

As the employer, you need to do PAYE if you are paying £111 or more per week. Whatever someone says their personal situation is for other things they do, if you are offering them a job, expecting them to turn up when you tell them to, to do as you say, then you are responsible for deduction of taxes.

Hmmm thanks for your replies. It is worrying me a little bit. She is coming for an interview on Friday. I shall ask then. I know she is Polish but has been here a number of years. I am not employing her on an ad hoc basis so in that regard I don't think that can be her reasoning. Will wait and see! Thanks again.

My nanny is self employed and I was worried too, so I contact HMRC to check myself.

They told me that because she belongs to an agency, and because she works for another family, and because although she works one set half day each week, she often works extras each month too.

She is required to submit her own tax assessment and invoice me like any contractor would do, like a window cleaner for example.

She emails me her invoice every month and then I pay her like I would the window cleaner.

Beggars, sounds like there is ad-hoc work in the mix in your case. Whereas in OPs case it is two fixed days, fixed hours.

Honey, self employed people do not get paid holiday entitlement. They don't get a contract. They set their own terms of business so would be telling you how much to pay, when to pay it, what they do for that money. Their pay rate would take account of not getting paid holiday, so it would usually be higher than you would pay an employee.

So if when you meet them and if you decide they are suitable, then if they want things like paid holiday entitlement, that could be an indication that they really want to be employed.

Personally I would just tell them that you will be doing PAYE, they will get a contract which gives entitlement to paid holiday.

There is no problem them being self employed for some of the things they do and being employed for the job you are offering. They simply put down their earnings from employment on their self assessment return.

I thought the law changed to give hourly paid workers holiday entitlement. Thàt could be an increment on the basic hourly charge.

Lizs, I think that is to do with zero hour contracts and temporary workers, so those people are still employees. Someone self employed is running a business, so they decide what they charge.

Contact HMRC for advice, as it's not always clear cut as the above. The nanny may well be classed as self-employed depending on lots of other criteria.

Generally nannies are an employee, fairy rare to be self employed unless doing very ad-hoc work. There are many factors that are taken into account by HMRC so if the overall picture is of self-employment then they might permit a fixed days/hours role as self employment.

If someone insists on being self employed, then contact HMRC Status Team for advice. Status Team contact info.

Perhaps ask the nanny why they don't want to have paid holiday entitlement, or statutory sick pay, or a contract of employment which gives them a right to a notice period if you want them to leave? Why would they not be wanting those rights?

As they are from Poland then there is unlikely to be an immigration issue.
Meet them, see how they do at the interview.