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Paid childcare

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

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Original poster

Tax code for nanny share?

6 replies

Squiffy01 · 05/04/2016 14:21

My first time doing a share and was wanting to know if it's normal for your personal allowance to be taken away?
One family using full allowance the other BR but have just had a letter through saying my tax allowance is going down to about £1000. Please tell me this isn't right?!

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swlondonnanny · 05/04/2016 14:43

I had similar think happening ( half of my taxfree allowance taken away, think code was 560). I queried it with HMRC straight away through their online form and they changed it back to normal. On the letter you received from them there should be an explanation why they did it (with me they claimed that my new income would be in higher tax band - hmmm, I wish....).
Good luck...

Original poster

Squiffy01 · 05/04/2016 14:48

Thanks for the quick response. It said it was because I either have a second job or two pensions.
So I do now have two employers. I hope it's a mistake cause that will take me down to nearly what I was at before!
I assumed you just paid tax on everything with second employer?

OP posts:

nannynick · 05/04/2016 15:18

This spreadsheet (google sheets) shows a possible way of calculating salary in a nanny share. It also compares to one job paying the same total gross salary.

The coding notice you have been sent - does that say which employer that code is for?

If you feel the code is wrong, you can call HMRC and discuss it with them - it may be that a former employer has not yet finalised their payroll - did you get a P45 from your last employer and give that to one of the families for whom you now work?

nannynick · 05/04/2016 15:20

It will depend on your pay from each of your employers. If nether of them pay you over £11,000 gross, then some of your tax allowance will be allocated to the second job. Perhaps wait a few days, see if another coding notice arrives, then add the numbers on those notices together and see if they total 1100.

Original poster

Squiffy01 · 05/04/2016 22:16

Thanks for that Nick.
No P45 as it isn't a new job it's just turned into a share.
In the notice it says original employer will get all of my allowance which will drop to 1000 and new employer (share family) will have BR.
I get more than £11 000 gross from both of them I believe.
My boss has contacted PaYE for nannies to see what's going on but I didn't see him tonight so haven't heard anything.

OP posts:

nannynick · 06/04/2016 07:49

Check the dates on the coding notice.
At this time of year it may be a coding notice for last year.
Today is the first day of the tax year.

PayeForNannies should get a copy of it, theirs may not have arrived yet so they may ask you to take a picture of it and email to them. With luck all will become clear.

You can call HMRC for an explanation - number should be on the coding notice. If not try 0300 200 3300 (8am-8pm M-F, 8am-4pm Sat)

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