Doing own nanny payroll with HMRC tools

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Decided to do own nanny PAYE using HMRC basic tools. Am in a muddle already and managed to miscalculate nannies first payment. Think I'm a bit clearer now but in terms of what odd payable to HMRC each month can someone just confirm that it is the income tax and national insurance OK the nannies gross pay, plus employers national insurance?

Also any recommendations for free electronic payslip software?

Thanks

Nanny earns £200. She has to pay £40 tax and £20 national insurance. You have to pay £30 employers national insurance.

Due to nanny - £140

Due to HMRC - £90

Does that help?

Hi, yes very helpful thanks, sorry about spelling in earlier post was on phone in a car. basically I hadn't realised we had to pay anything to HMRC on top of the deductions from the nanny's gross pay - eg knew nothing about employers national insurance!

Costly business this nanny employment!

I've always used the payroll site to do my nanny tax (and we use it for pre-school as well).
Upside is that its very user friendly and they're on the end of the phone if you need them and its easy to print off wage slips and send things like end of tax year reports to HMRC.
Its also easier to calculate pension payments which you'll need to do from next year.

It's worth paying for a company to sort it. Esp with pensions coming in

About 100/150 a year

Nannypaye is very good

Avoid nannytax. Expensive

And yes you need to pay employers ni - which I do think is unfair and prob why lots of families offer cash in hand to avoid it

I seas going to do it all myself but gave up after several times being held in a queue for ages trying to speak to HMRC. I ended up paying a company £12 a month to do it all for me. So much easier just to send them a single email each month.

I was

Thanks. I've not found the HMRC phone waiting times too bad the problem is they aren't very good at explaining things in simple terms. Their website is unbelievably complex too and the payroll software not much better. Its become a personal challenge to navigate the process and I think I have it figured out now - hopefully next month's payroll will be much more straightforward!

Karoleann The Payroll Site looks like a good and reasonable option if it all becomes too much! Thanks

Have you tried brightpay? It's free and super user friendly. If you're stuck you just call them and they help you out. It's approved by hmrc as well and every month sends the relevant info to hmrc. You still need to log on PAYE once a month to pay employers tax and ni though.

yes Brightpay looked the best out of those I looked at but doesn't work on MAC I think so I'm trying one called Payroo just to do the payslips and do the rest through HMRC Tools. Thanks

Agree the pension thing is going to make it harder ...but it really is straight forward otherwise.
Pretty sure you are not going to have to pay the first £2k of Employer's NI - you should get an allowance (there is a box on basic PAYE you can tick - pretty sure it isn't just for small businesses -brought in by the government last year or something) AND as you won't need to pay them much you can ask if you can pay HMRC quarterly rather than monthly....so every 3 months (April, July, Oct and Jan) you just pay them through the bank using your employer's no and a reference - they send you the letter that tells you the reference to use and account to pay it to.
Using basic PAYE you click on manage employees and then add a payment, answer all the questions. Then submit.
Then go to the employees page and under 'employee pay and deductions record' you get 3 tabs showing their NI and another one their tax to date. (Good to remember - employees NI is what you deduct from the employee's pay and is always less than Employers NI).

Under 'employer' there is an option to calculate the amount due to HMRC and a summary
(I think the old Basic PAYE software was more user friendly but it did less - they are both more user friendly than the old paper tables and paper P11s!!)

Ahh- just read that back - the letter about paying HMRC you get when you set up then in feb/mar every year - the references are on the back - you don't get one every month/quarter!

thank you! i was charged employers NI last time i put the details through so i'll have to double check that. now that i've (fingers crossed!) got it all figured out, i'm hoping next month's payroll will be more straightforward!

honestly, use payefornannies. it's well worth it, much cheaper than nannytax.

Nanny employers do not get the Employers NI allowance, so Employers NI is payable on a nannies salary.
www.gov.uk/claim-employment-allowance

aha, thanks!

Sorry for getting your hopes up...
But hopefully you can do quarterly payments? That does make your life easier...

There used to be some free software that worked alongside the Basic Tools to produce a payslip but I can't seem to find it.

I did find this (although haven't tried it):
disabilitytaxguide.org.uk/paying-wages/reporting-paye-in-real-time/rti-software/hmrc-basic-paye-tools/payslip-tool
(If it's any good let us know!).

Also, re. paying of PAYE. If your PAYE bill is less than £1,500 per month you can pay quarterly in July, October, January and April. Just be aware though that if you've already made a payment outside of one of the quarters, your account is automatically flagged as monthly by HMRC and they'll expect payments each month by 22nd (or 19th if you pay by cheque). You'll need to call them to request it's marked as quarterly if that's the case.

Hope that's helpful. :-)

Unlucky83 - Thanks and no worries, I've realised I don't have to pay employers NI normally due to the number of hours nanny worked. But yes quarterly payments I can do.

ZestClaire - Thank you so much! That payslip tool works perfectly and is really simple! I haven't found any other tools online that work with the HMRC Paye Basic Tools and all the other ones I've looked at you seem to need to subscribe too and pay for, and they were horribly complicated.

Will look into quarterly payments too.