Is Mr Anchovy about? Or any other nanny tax knowledgable people? Splitting tax code advice needed!

[PassTheCremeEggs]

I have a nanny for three days a week. She works for another family for the other two.

I agreed a gross salary with her of £12ph. First payslip in - whole thing taxed at basic rate because other employer is using the whole of her personal allowance.

Other family pay her net () £11ph. Because they are using her allowance, she only gets take home from me about £8.50 an hour when we estimated it would be just under £10ph based on a £1000L tax code.

Payroll company says she can split her code between us. If she decides to do this, her other employer is going to be paying a lot more tax to pay her the same net wage and I'm concerned this is going to cause problems for her with them. But if she doesn't, she's going to lose out in her take home pay from us.

What should I do?? Any advice gratefully received! Also I need an easy way to explain all of this to her because she doesn't really understand and I'm terrified we're going to lose her over it because she's not getting enough take home

Sorry OP seems your nanny doesn't want to pay tax :)
Just explain you can earn 10 k roughly then you pay 20p for every pound.
So either she only works enough hour to reach a 10k income or she pays tax like everyone else.
I assume she went to school, uses the NHS etc etc. why does she think she is so special?
I wouldn't employ some one whose either dishonest or not as bright as a five year old to care for my children.
Advertise again.

Harsh Florence - the nanny "industry" has done no one any favours by net pay ever becoming a thing!

OP - at least you have some it right!

Florence perhaps you should read the thread before you start making judgments. I haven't said anywhere that my nanny doesn't want to pay tax. Thanks for your oddly venomous input though

And so your five year old understands the intricacies of the PAYE tax system does he/she? Extraordinary.

I meant "at least you have DONE it right"

Some of us have fighted for years to get the industry to change to only doing Gross. Finally some big agency chaines did take notice but many nannies still talk Net.
Why? No other job pays net wages. Many nannies have worked in nurseries who pay gross. So why do net wages still go on? Wish I knew.

You could really put the cat among the pigeons and offer her a company car... there would quickly be no other family at all

If families agree to net to gross arrangements they are agreeing to take on the employee's tax burden. It isn't just affected by second jobs and should be considered very carefully or not at all

Sorry to upset you OP but your nanny clearly doesn't want to pay tax.
Has she been paid cash in hand in the past and avoided tax?? Because I find it staggering that an intelligent adult could think they can earn £20k plus and avoid tax. Or only pay the small amount from job A

You say she doesn't understand?? But I think it is simple and yes a five year old could understand the principle that you are paid ten pounds and two pounds is kept by the government. You are allowed to earn so much before you have to pay the government. It is very simple and no need to make it complicated.

The tax office will split the tax code automatically so you don't need to worry.
Being a nanny employer is simple you agree Gross amount. You are making it complicated. The other family and the nannies tax code are not your business. If she doesn't take your job then give the position to your second candidate. You sound too desperate to be honest.

letsplayscrabble all has been very different in the world of pay as you earn for the last year and a half.

They'll happily split now, even when not appropriate. No middle ground it seems

Florence I think the OP understands perfectly well tbh. Her nanny doesn't but why the sniping at OP?

It is common for some unknown (to me) reason for nannys to be paid on a net to gross basis, as PP have said

The nanny will be/does pay tax anyway - her employers atm pay it for her so your assumptions about her not wanting to pay tax seem wide of the mark and uncalled for.

Florence, the OP is paying the nanny gross - it doesn't matter to her whether the tax code is split or not.

Yonic - The OP has posted on here asking for advice on splitting her employees tax code.

Thegirl the OP is frightened her nanny will not take the job because she will not earn as much as she thought. She will earn less than she thought because she has to pay tax. So I disagree I think she doesn't want to pay tax.

Could you work out what her gross pay from her other family is? Approx? Then add the 2 gross pays together and show her what the total net on t that would be..(less than 11) then show her how as the other family aren't paying her the correct net figure you have to pay less so her tax bill ends up right? I don't imagine there is much chance of the other family politely agreeing to a split tax code...

Florence

It is clear from the OP that (a) the nanny is already doing the job and (b) that it is the nanny who needs to notify both parties and HMRC of the split tax code.

I think the other family will be indifferent to splitting the tax code if it doesn't impact their outlay, aka agreeing a gross figure for pay going forwards...

Agreed... Although suspect the nanny would see it as a pay cut!!

The tax office will not split the tax code automatically, they prefer not to. They will allocate all the tax free allowance to the first family unless asked to split it.

Gross pay from the other family should be on her payslip, so perhaps suggest she looks at that. The other job may pay more or less than your job - that's life. They took the job you offered at the salary you offered.

Petra, the other family are paying her the correct net pay. Plus tax & NI.

But if the tax code is split they will pay more. So same net pay, plus NI but more tax.

Nanny is not affected in her take home from the other family, but would be better in her take home from OP.

The problem is not with the tax or the code used per se. It's that the nanny knows the other family will squirm at paying a larger chunk of her tax on top of her agreed net pay.

Yonic
The title of the thread is asking for advice on splitting the tax code.
The OP has talked to the pay roll company about splitting the tax code
and quote
"I think I'm suggesting she splits it be because:"

So OP is clearly not of the understanding that the tax code is not her business but the nannies.

Scrabble I think that HMRC have changed and split the tax code automatically now. That was my experience in 2014. As soon as I took second job I received notice of splitting the code.

Thank you to all who understand the position. Florence - seriously. You clearly haven't read what I've written at all. My nanny has been working for me for a month - this is our first pay run.

I raised the issue with her because I knew the net pay this month was less than we had together roughly calculated (while agreeing a gross figure). I have to explain to her that's because her other family are using her whole allowance. I have to also explain to her that if she switched the allowance entirely to us she will get a lot more take home pay because her other family has agreed to pay her net therefore her salary will remain the same even if they have more tax to pay, while our deductions will go down resulting in more pay to her. I am trying to look after her as an employee because she is an excellent nanny who I am very happy with.

I want to do this sensitively so she doesn't get into a row with her other employer.

She did not raise this issue, I did. Not once have I suggested she doesn't want to pay tax. And an ability to understand the PAYE system is not at the top of my list of priorities in someone who I am asking to care for my children.

So - can you please keep your snippy, factually incorrect and quite frankly bitchy comments to yourself because I haven't a clue how you're thinking you're helping.

I totally understand that it's her business whether to split the tax code or not thanks. I'm simply trying to explain to her what the result of that would be.

OP I don't think my comment are 'bitchy' and I think you are very rude.
You have posted on here asking about splitting your employees tax code.
Her tax should be her business not yours. You are treating her like a child.

She took a second job. Had a BR tax code and was surprised when the net amount was less than what you had both discussed.
PAYE Tax is not complicated so if she doesn't t understand the the basics then yes she is not very intelligent.

I personally would not have someone who is not very bright caring for my children. You may not like that comment but you have posted on a public forum and I'm entitled to my opinion. I would seriously worry about how she would cope with an emergency situation.

My question wasn't "is my nanny a good one" it was asking for advice about split tax codes. It's not compulsory to post, you could keep your thoughts to yourself on whether she's a suitable nanny. Your first post stated you hadn't read the thread, you then "advised" me based on a string of incorrect details which weren't in any of my posts then you told me she was either stupid or dishonest. I'd call that bitchy. That's why I'm unclear as to what value you think you've added. But thanks so much for taking the time to contribute.