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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

(Boring) nanny tax question

7 replies

girasol · 27/02/2016 20:18

Hello, we're about to make a job offer to a nanny and the agency we found her through has said "the tax codes are likely to change in April so you may wish to discuss how this affects the offer you may be making". Does anyone know anything about this please? We've not had a nanny before, so it's all new to us. Thanks!

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girasol · 27/02/2016 20:22

As a PS I should say that all the salaries we've been discussing have been gross so I don't see how a change in tax codes should affect us but as I say, I'm new to all this.

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nannynick · 27/02/2016 20:26

As you have been discussing gross the personal allowance increase makes no difference to your cost. It means your nanny gets a bit more take home pay.

nannynick · 27/02/2016 20:29

By agreeing a gross salary you protect yourself from tax code changes. Code changes occur for various reasons such as past underpayments, changes to personal tax allowance, giving some personal allowance to a partner, splitting personal allowance between jobs.

AveEldon · 27/02/2016 20:31

The main tax code changes coming this year are related to interest on bank accounts
Do you have to provide a pension yet?

girasol · 27/02/2016 20:37

Thanks for your replies. The impression I got from the agency is that this is some universal change to tax codes which will affect nannies, rather than the type of change which comes about through a change in personal circumstances or whatever. I need to double check the pension question, but the agency thought I wouldn't need to make any contribution yet.

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nannynick · 27/02/2016 20:43

If you are a new employer (so setting up a PAYE scheme for first time) starting March/April your pension start date (called Staging Date) will be January 2018.

nannynick · 27/02/2016 20:45

Everyone gets an increase in personal allowance (income tax) in April 2016. Changing from £10600 to £11000.

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