from cash-in-hand to on-the-books?

[feelingfedup]

Our great nanny has been with us for a year. Made it clear at the start we could only afford to pay her £8ph if it was cash in hand, which she agreed.

She now wants to be 'legal', but she does not want to pay tax and NI, she wants US to pay her tax and NI so she still takes home £8ph. This will mean we would be paying £10+ ph, which we can't afford.

Just don't know what to do, we just can't afford £10ph, and we feel a bit miffed because we did make this clear at the start, but we all really like her and I would rather not have to look for a new nanny.

Any suggestions?

Tell her you don't want to pay £10+ ph. I think it's a little cheeky of her to ask you to do this! Are there any benefits you could claim to make up her tax and NI if she does insist on it?

If you made it clear then i think you'll need to get another nanny. Maybe she is looking to get a mortgage and needs proof of salary. I worked cash in hand for a year once because i was desperate for job and it is really stressful so maybe she didn't realise what it would be like. But still if you said at the beginning you couldn't afford it then she needs to look elsewhere.

Maybe she didnt realise what she was doing at the beginning and now wants to do it properly, which i think is the way you should of done it anyway. I was a nanny for 15 years and never would of done it cash in hand.
I would try and compromise somehow.
I think the extra £2 ph, is worth it for the sake of your children to still be settled, unless your not bothered if a new nanny comes in.
maybe you could say that you really want to keep her and will pay that but there will be now payrise for 18 months??!!

I meant NO payrise...sorry!!

Where did you get your numbers? I think if the nanny is working a standard 50-hour week it works out more like £12 per hour gross!!!

In terms of suggestions - maybe you can try and compromise - would she agree to split the difference?

Also is she registered? You can get her to register and than use childcare vouchers.

It is your responsibility as an employer to pay tax and NI on your nannies wages. It is you that will be fined and penalised if you don't not hte employee.

I'm sure your nannies recollection of the conversation would be that £8 per hour take home was the least she was prepared to work for - just as yours is that £8 was the most you could afford.

You need to pay the tax and NI - and the vast majority of nannies will insist that you do so - rightly so in my opinion.

At the end of the day, if you cannot afford her then you will have to find someone cheaper. I don't know where you live, but I imagine you might find it hard to get someone for less than £10 per hour gross! So be sure to do your research on going rate first in case she leaves you, and hte replacement turns out to be more expensive!

Just a phase is of course right - as a rule of thumb the tax and NI add about 50% onto hte net pay - so £12 is about right!

Thanks for all the responses - you are right, it will be more like £12ph which is completely out of the ball park.

I think it might be for mortgage purposes - so she will need to find a new employer. It will be cheaper for us to send ours to nursery rather than get another nanny, but would rather keep the nanny, but I understand her predicament, and ours and there just is no compromise on this one.

as you say if you cant afford it then she has to go. loads of ppl work for cash in hand, due to childcare being so expensive, this is the only way some ppl can afford it. i was the same when we had a nanny for the first 3mths, then i paid the tax and ni, but it made things tight.

if nursery is cheaper then id go down that route.

if houses/mortgages/living was cheaper and childcare made cheaper via the government no one would be in this predicament.

good luck to you.

cx

Lovely nanny wants to stay - even if it is cash in hand. Will be making sure she gets a very nice crimbo pressie..............