Nanny expenses, mileage and kitty

[Howmanybeansmake5]

Hi! This is my first ever post on MN, and it's a quickie :)

Basically, I want to know if I'm able (allowed?) to pay our nanny a flat rate for expenses, mileage and kitty? We are operating a cash kitty system and mileage log at present but feel it would be easier to pay the lot upfront, almost like an allowance I guess.

I'm not sure of the tax implications of this, if any, so any advice would be appreciated from either nannies or employers of nannies.

Thank you!

Not for mileage, that needs to be logged. You need total miles and total paid amount paid.

Kitty can be a set amount, in some ways that is best as nanny then has to manage the budget. Could pay it monthly in advance. If to bank do separate to pay so it can be seen as expenses.

Expense ie kitty and mileage need to cover the exact cost - down to the last penny.
One penny less and the nanny is paying for your children, one penny more and it is income and the tax man will want his cut :))

You could give your nanny a set amount of money per month either as cash or bank transfer in advance. Perhaps you or your nanny could tally up how much on average she spends per week for kitty and mileage so you know how much to give her on a monthly basis. Then at the end of the month add up all the mileage and kitty logs so you can pay any money owed or carry over the remaining monies for next month

Thank you all. That's as I thought. I quite like your idea though Foresitters with a true up at the end of each month, as long as that's ok in the eyes of the taxman. We just want to do things the right but easiest way.