Hourly rate for Nanny in London

[underthebaobabtree]

Can anyone advise typical gross hourly rates for a live out sole charge Nanny looking after a 13 month old child in London? We are looking for someone part time.

I have had a huge range of figures quoted by different friends and candidates, from 6pph to 25pph!

Typically Nannies on childcare.co.UK are asking for 10-12 net, but how much gross would this be?

Also a few have told me they are self employed and want to be paid cash, I'm presuming this is illegal tax avoidance rather than a legitimate arrangement?

Yes £10-12 net per hour is average. The gross rate depends on how many hours they work and their tax code etc.

For example... A nanny working a 50 hour week at £10 net per hour would earn approximately £33,750 gross per annum, which is roughly £13 gross per hour.

Whereas a nanny working 25 hours a week at £10 net per hour would earn approximately £14,600 gross per annum which is roughly £11.23 gross per hour.

You see the gross hourly rate changes even though the net hourly rate stays the same, because of the tax difference. You need to work out a gross rate you can afford to pay, and offer the salary in gross. They can then work out the net salary themselves if they wish, or you can convert it to an approximate net salary.

And yes, being paid cash in hand or being a self employed nanny isn't legal. But YOU are the one that will get in trouble, especially if you agree in net.

I would advise AGAINST paying cash in hand.

Pay them all in the books through a known company and have proof of payments.

In London, typically it's £13 gross.

£6 is way to little and iv never heard of over £16 gross and I know ALOT of nannies.....

Don't worry, we discarded the applications asking for cash in hand. I just wanted to check I hadn't jumped to conclusions.

It's so frustrating that all the candidates are asking for net salaries, and they are all confused when I ask about gross!

Should I ask them to show me their tax code and plug it into an online calculator in the interview?!

As long as it's their only job, their tax code is most likely 1060L.

I would advise using a tax website to calculate the gross salary based on £10, £11 and £12 net per hour for the hours you are advertising. Then you know where you stand with them. Good luck!

Most seem to have another part time job, how can we find out what the tax code for my job will be in advance?

Hmm in that case I don't know. I think you need to just offer a gross amount because if a nanny has another job that already uses her entire tax free allowance you could end up paying over the odds if you offer net (as you'll pay tax on the entire income).

If they have another job, definitely offer gross as the tax will be alot higher.

Nannies wages is normally worked out in Net, unsure why but that's just how the majority of nannies work.

I would call one of the nanny tax payroll agencies for advice (we use PAYEforNannies who have always been super helpful).

All Nannies seem to want to discuss net but it's very important to agree gross in the contract. We verbally agreed 12 net (centralish London for a nanny with 20 years experience) but the contract is gross. I used MrAnchovy to calculate the gross amount. I think you can get somebody good but less experienced for 10 or 11 net even here.

Good luck!

I employ a nanny. Slightly oft but the gross/net thing really bugs me. I know its historic. But it's time those still clinging on the the practice got with the times. If I asked my employer what my net pay was he'd laugh.

Yes, several nannies have been completely confused when I've talked about gross pay. Why is net pay so common for nannies?

What are some reasons to have a different tax code? Cause that isn't mine and Ioved got nanny job just the. One.

I think it may be agencies who push the Net pay thing. Fortunately a few are now going salaries as Gross.

If they have another job and if they earn over the personal tax allowance, then taxcode BR when used in a Paye Calculator will give you the likely Net from a Gross pay amount.

A nanny payroll company can certainly help you and the nanny may want to split tax code between jobs (if HMRC allow it) but do not rely on that split happening. As others have said, agree a Gross wage in the contract. Hard to give a likely Net figure without seeing payslips for the other job - you could perhaps give an indication using 1060L but saying that it would only be the case if it was their Only job.

MrAnchovy's calculator alas does not work for this financial year but others will, though are not as easy to use. UKTaxCalculators will do Gross to Net.

There are many reasons for different tax codes.
It can often be due to repaying past under payments.
It may be that HMRC think you have another job.
You may have given part of your personal allowance to your partner.

The code is formed out of several parts.

The number is the amount of tax free allowance.
1060 means £10,600
L is the normal code for those born after 5 April 1948
N means you are giving some of your allowance to your partner.
M means you have received allowance from your partner.
T and K are codes used for more special reasons.
W1 and M1 are emergency codes which means tax is calculated in each pay period (weekly or monthly) rather than over a full year.
You can look up what your Letter means here on Gov.uk

Codes are updated from time to time, often as a result of an employer submitting their FPS with the employee leaving date included. The employee should get a P45 which they pass to their new employer who submits that information with their first payroll run.

If you feel your tax code is wrong, you can complete form P2 to request that HMRC check your records. You can only do this if you HAVE RECEIVED a 2015-16 PAYE Coding Notice.
If you do not have a Coding Notice for this tax year, then contact HMRC via details here (income tax enquiries for individuals).
It may be useful to have all P60's from the previous tax year with you when you call along with payslips from this tax year.

I have found the following on www.littleoneslondon.co.uk

Live in: £5.50 to £8.33 net per hour
Daily: £8.00 to £12.00 net per hour
Part time: £9.00 to £12.00 net per hour
After-school: £10 to £15 net per hour

Hope that helps!

Those figures are all nett

Which means if nanny has 2/3 jobs the employer may end up paying huge tax amounts

Always discuss gross

Averagely £13 gross an hour

Never pay cash