Temp Nanny for 8 weeks... Do I pay tax and NI?

[lillabean]

We have hired a part time nanny through the end of year, she is asking that we pay her N.I. and tax ect. She works about 25 hours a week

Do you pay N.I. and tax if you only employ a nanny for 8 weeks?

Not sure. I think that might be short enough that she could be contract. However, if you need to take her on as an employee, then you are responsible from deducting her tax and ni froom her wages. Do you have a contract? Are you paying in gross? I highly recommend you pay gross not net.

I have to say that 8 weeks hardly sound worth the hassles of becoming an employer.

There are special circumstances if you take on an employee for One Week or less - see HMRC: Day-to-day payroll for details. Alas that doesn't help you, as your nanny is being employed for 8 weeks - but may be handy for others to know about for future reference. Also implies that there are no special arrangements if employee works more than one week!

Probably best if you call 08456 070 143 (New Employers Helpline) and ask them. If you are already an employer, then I suspect you will need to do PAYE as per usual. Simplified Deduction Scheme I don't expect will apply, as that is limited to taxable pay not exceeding £160 a week/£700 a month and I would expect 25 hours nanny time to cost more than that. Simplified Deduction Scheme

Can I pay just the NI tax and not the income tax?

I don't think this person is self employed... I guess that is the case with most short term situations?

I echo your sentiment that the hassle seems daunting for 7 or 8 weeks...

I agree that it could be hassle. Though if you were to have another nanny sometime in the next year, it may be worth that hassle. Also, as it's 8 weeks you could pay Monthly, and thus only do 2 Payroll runs.

No, you can't just pay NI to my knowledge. If you were not registered as an employer, how would you pay it?

HMRC IR56 will help regarding determining employment status. A nanny will in my view almost always be an Employee, as it is the parent who dictates the hours of work, the duties performed, and would probably not take well to the nanny sub-contracting the job for someone else to do!

Pay her in gross and deduct her income taxes from her salary. If you haven't already done so, check out nannytax.xo.uk. And,I recomend hiring nannypaye.co.uk. (cheaper than nannypaye)

Pay her in gross and deduct her income taxes from her salary. If you haven't already done so, check out nannytax.xo.uk. And,I recomend hiring nannypaye.co.uk. (cheaper than nannypaye)