Nanny using own car? Advice needed

[JonSnowKnowsNowt]

Just after some advice about nanny potentially using own car.
At the moment our part time nanny doesn't need to use a car for the job - everything is within walking distance. We're exploring the option of her going full-time, in which case she would need to use her own car on an occasional basis for the children (possibly once or twice a week at a maximum, many weeks not at all).

What would I need to check about her car to make sure that it is safe for the children? Would i just pay 45p mileage for when it is used? What else should I take into account? What are the insurance considerations?

Any advice welcome!

It's pretty standard for nannies to use their own car whilst at work. She will need to make sure she is insured for business use. Her nanny insurance should also have extra insurance for if your child was in an accident in her car.

You should put in the contract that her car must be fully serviced, taxed, insured and safety checked before driven.

You will just need to pay her 45p per mile, extra insurance is usually the nannies responsibility, but you could always offer to pay. (Usually less than £50 extra for the year)

• What would I need to check about her car -

Give it a look over to see if you feel it is a rust bucket or something reasonable. Ask to see service history.

Are there suitable child seats? Will you or the nanny provide them, would they be removed each day, or kept in the car permanently?

• mileage payment -

If in Jersey C.I. it would be 60p (just found that out last night!). The amount in most parts of the UK is not specified, you can pay what you like but in England/Scotland/Wales/NI if you pay over 45p per mile then it is a taxable benefit. The mileage allowance is supposed to cover the cost of your nanny providing the car, wear & tear, maintaining the car, cleaning of the car when required, insurance and road tax, as well as for the fuel. So yes, I would offer 45p per mile for all work related mileage. Mileage to/from their home to your home can not be claimed. They must log all journeys and submit a mileage claim to you - I suggest once a month they send you the mileage log - I use a spreadsheet. As long as annual mileage is under 10,000 miles and you pay 45p or less, then it is not a taxable benefit.

• insurance considerations -

They need suitable insurance. This will often mean adding Business Use to their policy. Some providers will do that for free, for an admin fee, and some will charge a hefty amount (have known it to be over £100). It depends on their policy provider. They should make sure their insurer knows their occupation and that they are NOT doing Hire&Reward but are transporting children as part of their work.

HMRC: Business Travel Mileage
Reporting of any payments over the 45p would be on form P11d. Your nanny payroll provider can assist with this. They would require information at end of tax year for doing your employers return (p35)

They will ask something like this:

If you have provided a mileage allowance for BUSINESS travel, please state:

1. The rate (in pence per mile)
2. Approximate number of miles reimbursed (e.g. for travel with the children):

Additionally, have you provided the employee with travel or subsistence allowances, or payment for fuel in addition to or instead of any mileage allowance declared above: Yes / No A mileage rate of 45p per mile or less, for less than 10,000 miles per annum is not taxed and is not reported to HMRC. If the rate is over 45p, extra tax and NI will be payable. ---

Interesting that Jersey is 60p a mile as fuel is much cheaper in the C.I. as tax is lower. Although now they have scrapped road tax it has gone up a bit, 92p a litre 2 weeks ago. Last year it was 60p.

Jersey - Flat rate mileage allowance
I like how the example they use is that of a nanny doing school pickups and outings.