After school nanny share - best way of paying?

[SarkyMummy]

We're about to hire a young woman to be our after school nanny, looking after three children from our and another family. The potential nanny has two other P/T jobs and will be working for us and the other family 3 days a week (3 days for their two children, two for our one). We want to pay her a fair wage but are not sure of the best way to do this. All parties are keen to be above board but don't think a nanny tax company would be able to cope with the complexity of different shares of the pay due from different families and the tax implications of her two other p/t jobs (one of which is a self employment role). Can anyone advise on the best way of doing this? Any thoughts/advice gratefully received!

Sounds like exactly what a nanny payroll company would do. You wouldn't have anything to do with her other jobs though - you aren't jointly employing her.

Do you know payroll well enough to do it yourself?

If not, then call NannyPAYE, payefornannies or one of the other nanny payroll companies and see how they can help. They may also be able to assist with drawing up a contract of employment, term time only contract possibly.

The nanny having other work is not really of interest to you. It only changes their taxcode and you would not be agreeing a Net salary, you would be doing Gross so the tax code makes no difference to your cost.

Self employment would not apply here as you are offering a job, not using an occasional babysitter. Them doing self employed work makes no difference as they declare their business profits on their tax return after PAYE income is taken into account.

A nanny PAYE company will be able to advise on how best to set up given 2 days care of children from both families, 1 day is just one family. It may be a joint PAYE scheme or it may be two schemes.

You need to consider practical thing like transporting all the children. What if a child is ill. Which house used for care or will it change? Holiday arrangements - what happens in school holidays, what if one family needs care but the other does not. What if the nanny wants time off during term time?

You are making things too complicated.
Her other income is not your business,
Agree a Gross rate.
Usually you pay a higher rate than 50% per day you share as when the nanny has two families it is extra work. Plus two sets of parents are not easy to co ordinate etc.

Thanks all. That's helpful. I'll make contact with dome firms.

We're in a share currently so familiar with issues to consider.

That's the whole point of a nanny tax company - to sort out complicated shares

Agree a gross wage and then doesn't matter about what else she does. Won't effect you