Nanny pay. Simplified tax. HELP!!

[ziopin]

Hi

I currently employ a full time nanny. I pay her using the PAYE system.

I am cutting my hours at work and want to employ her on a part time basis. Does anybody know how the simplified tax sytem works and how much the threshold for pay is?

Many thanks

Well the tables go up to a weekly taxable pay of £160 - tax-free amount is around £97, so would assume limit is £257 per week.

I know you're not a new employer but I found the new employer helpline 0845 60 70 143 really useful. I used to be on the simplified scheme - which meant quarterly payments of paye / NIC and a couple of forms to send in at the end of the year - but don't recall the threshold. To be honest I don't find it a whole lot different being on the full scheme, other than payments are meant to be monthly with an option for quarterly.

As you are already using PAYE, I can't see what the point of changing to Simplified system would be. PAYE for one employee isn't really all that hard...
Example of First Pay period can be found in this thread .

As you are looking at moving to a Part-Time nanny, perhaps try to Fix the amount of hours your nanny does per week. That way you can calculate total hours per year and total yearly pay, and agree with your nanny a Gross Annual Salary. Then do PAYE monthly, splitting the annual salary into 12 chunks. Then using the Employers CD-ROM you can do the PAYE quite easily.

To answer specific question, if you pay between £84 and £96 Gross per week, then you can use PAYE deduction card. See DirectGov - Domestic Employees