Should I agree net salary ?!

[Toomanywheeliebinsagain]

I've been searching for a part time nanny / housekeeper. Found someone perfect through a close friend. Her two references still employ her after ten years and one described her as every mothers dream. She's OFSTED registered, local, great with the kids and really nice. I was keen to push the boat out and offered her £12.50 gross rather than a net salary. She accepted but when I sent through contract she asked for a net figure. Because she works (less hours than me) with existing families I would be paying £14.77/ hour gross as they hold tax allowance. This is way over my budget so upped my offer further to £13/hour gross but she still wants a net salary. I really think she's great but I don't see how it can work with three employers. Thoughts?

I'd be very careful about this. How will this be worded in her contract? If you agree to pay her a sum that gives her a net £x each year it could mean that if she gets extra income from any source that puts her in a higher tax bracket you'll have to pay her more. And what about if income tax/national insurance rates increase?

If you agree it at all I'd say agree a gross salary (for contract purposes) based on what she's after net. But don't think this sounds fair as surely this means you're paying more than everyone else to make up for the fact that she's using her tax allowances elsewhere? Suppose it depends on how much you want her/whether you could get someone else you're happy with.

I didn't go with a part time nanny for pretty much this reason, all her tax allowance was with her 3 day a week family so to meet her net demand, her gross would have been much higher for me than if I was sole or joint employer.

Never agree to pay net, you open yourself up to a potential nightmare. Annoying when its what so many nannies ask for.

Thanks Chunky. £13.40 gross with some of tax allocation would give her close to her net. That's a lot higher than I wanted to agree.However, she can't get beyond the gross and wants net in her contract. I'm very frustrated but really feel very uncomfortable agreeing to something I can't control with at least two other employers.

If you agree net and HMRC suddenly decide that she's been overpaid SSP in the past, or some other error has been made, you will be paying off her debt. Job only on offer with a gross wage.

You are right to offer gross. Her tax affairs are her issue. She can calculate what her net pay will be given her situation.

Net is such a pain. She could ask HMRC to split personal allowance between all her jobs but they may not do that, may upset her other employers.

She seems to think that by paying gross she will be self employed. So if anyone has any ideas as to how to explain gross to a nanny who hadn't got English as a first language and has always agreed net I would be grateful

I think you need to be tougher here. she is the employee, the job is offered as it is. If she's causing you this much trouble now, is she really the greatest employee.

You just need to say to her, or email or whatever, that this is an employed post and the gross salary is x (and £12.50 is plenty gross unless you live in South Ken). she takes it or leaves it.

Really do not live in south ken. Far from it

So what she actually requires is that you pay her income tax 'bill' for her.

I would be questioning whether she is such a good fit after all.

Gross all the way and even more important as part time

you will be stung for any extra /higher tax

You offer a gross figure and she accepts it - end of !!!

Thanks all. I agreed a gross salary in the end. I had to go higher than I wanted but thought it worth it..
My children are a nightmare at the end of the day and I came back on her first day to find them bathed, fed and in their Pjs at 6.30 and giving her cuddles so think it was the right decision