Nanny advice please

[brunettemum]

Hello all - am a newbie after some advice.... all responses very gratefully received!

I have a baby girl and am due to go back to work in Jan. I am exploring childcare options and had a 'live out' nanny recommended to me who I met yesterday. I thought she was wonderful - and affordable - Hooray! But I now realise it's not so simple (why is it always the case?!). Having investigated further I have a couple of problems/questions that I am hoping someone can help with....

1. How difficult is it to officially 'employ' someone - and how much is employer's NI/tax?
   
   
2. She has given me a low daily rate as she wants to bring her own child with her and views it as a 'nannny share' - ?35 a day for 8 hours (her normal rate would be c. ?60). This is obviously great, but how do I get round minimum wage? When I spoke to the IR this morning they advised that the fact she is bringing her own child with her doesn't make any difference - is this right? I don't want to 'cook the books' (as some people have suggested to me today) as i am concerned that in the event of any disputes (not that there will be any, but you never know) I won't have a leg to stand on.
   
   Hope that makes sense and that someone out there can help. Thanks v much.

[brunettemum]

Thanks Riab - you've put my mind at rest a bit! I also think 80% of a days pay for effectively a 'nanny share' is ott. I will give her a ring over the wkend and talk it over with her.

[riab]

I think if you talk through your concerns with her you may feel more at ease. For what its worth I just think its liekly that she wants to work but recognises the benfits of being able to have her baby with her at the same time.
£35 an hour assuming she starts at 9am and finishes at 5pm is £4.37 an hour, now as most nurseries cost £3/hr she would need to earn £7.37/hr if she had to find childcare for her baby whilst working. Also most nurseries would require her to pay for the whole day whether she used all the hours or not and you cna see why taking what seems like a low wage is worthwhile for the benefits.

personally if I employed another nanny and they wanted to bring their own child there is no way I would think a 20% reduction fair, I interviewed two nannies who had their own children when i was looking and they both suggested a 60% of the wage I was offering.

(so that makes your £35 closer to £60)

Good luck and I'm sure its a case of you both getting a good deal here.

[brunettemum]

You're right - it is an incredibly low rate... and I was suspicious! But I have checked out her references today (12 continuous years worth) and they are good. I live in a small town in Wiltshire. She is married and her husband is well off, so I am not sure 'paying bills' is the motivation for her working. I think she has offered a low rate because she is very specific about the sort of post she is after, and mine happens to fit the bill - i.e. part time (3.5 days a week), late start (9am) and within walking distance of the local school where her son is (as well as being able to bring her daughter with her). To be honest - it is as convenient for her as it is for me. My biggest concern now is that if I offer the post, my daughter will settle and she will then hike the price up - leaving me with little choice but to pay.

I am still undecided between her and a v good childminder I have found with a vacancy. I haven't been this stressed about something since being at work - I went on Mat Leave in March. Best get used to it again I suppose :-(

Thanks for all your advice... I think I will give one of the payroll cos a ring on Monday and see what they say.

[nannynick]

You don't need to use a Nanny Payroll company. Doing PAYE for one employee is not that complex.
I have previously written a worked example, for the first time you pay your new employee... while it may look a little complex at first, it isn't once you get the hang of it and once you'd done it for a couple of months, other months will be much easier.

Paying my new nanny for the first time

With regard to the wage the nanny is wanting, £35 per day sounds quite low to me. What part of the country are you in? Is there any other reasons for the nanny wanting a low pay, not that I can think of any, though perhaps she is wanting to claim benefits. Is £35 her take home, or her Gross pay? I can't figure out why someone would want to work for this amount... surely she has bills to pay!

[nannyj]

Or try Nanny Paye i think they are cheaper then Nanny Tax. Plus if you use one of these companies then you get a rebate i think because they file your tax form online.

[Starrmum]

I would definitely recommend using Nannytax - it takes all the hassle out of it as well as keeping it on a professional footing.

You must remember that once you have a nanny you are officially an employer, and there are certain obligations that come with that - sick pay, maternity pay and even redundancy may all have to be considered.

Sounds like you have a good deal there, but I would make sure that she's going to devote time to your baby as well as hers!

[fridayschild]

or call nanny tax and ask them? if you get them or any other payroll agency to do the tax and NI, (which i would recommend to preserve some free time for yourself) they will have a model employment contact for you to use. Nanny tax have a free legal advice line as well.

this sound like I work for them i don't but i do think it is money well spent!

[pol26]

I don't think minimum wage counts, although I maybe wrong. I used to be a nanny and would've been a millionaire if it had of

I think Uwila is a good person to talk to about it really as she is very up on those types of nanny issues and would be very helpful.