This can't be right? Need to earn £45k to cover cost of FT nanny?

[BrummieOnTheRun]

Someone please tell me I've cocked up my calculations because I'm desperate to go back to work!!
I've tried 2 online 'nanny tax' calculators which tell me I need to add about 49% to the nanny's ?8/hr to cover the nanny's tax, nanny's NICS and employer's NICs.
And I've assumed about 33% of my income will go on tax and NICs.
Nurseries aren't working out any cheaper as it's for 2 children under 2 and they have added hassle-factor.
Am I massively miscalculating? I bloody hope so!

This was YOUR idea.

No, Mr Tax Inspector, it was some woman called Uwila on the internet, she's the one you want, honest...

I'm sorry sir, Uwila who? I don't know anyone named Uwila.

So is it true about the chauffeur then? (being tax deductable). I mentally write to politicians about this and other things many times never put pen to paper though!

The old nanny wage again! Why do people complain about how high their salaries are? Doesn't someone who is going to be looking after your child/ren deserve a decent wage? BTW I think you can claim back some childcare costs.

It's not how high the salaries are NAB - it's the fact that we pay the gross salary plus employer's NI out of pay which has already been taxed..so for a nanny to earn 400 net per week, her employer has to earn over 40k just to pay nanny's salary and taxes...whereas if the same person employed an administrative assistant, or a chauffeur, they could claim the cost as business expense.
The only childcare cost I can claim back is the childcare voucher scheme that luckily my employer's offer (although most companys don't seem to yet)..which saves me the tax and NI on 243 pounds per month...a drop in the ocean compared to my childcare costs.

NAB, this is more about the associated taxes that are collected which add to the cost, and not so much about the portion that the nanny gets to keep.

However, I will say that my nanny has a lot more disposable income than I do.

Snap, Bluebear.

I bet David Cameron could win the next general election if he campaigned to make all childcare tax deductable, and he could fund it by no longer susidising NHS employees childcare.

I do think it is unfair to pay tax on money already taxed but isn't it like paying for a service and you have to pay tax on those? Mmm, usually not a double tax though, eh? And don't forget the Government wants Mums to go back to work yet they don't help with this, do they?

It is not like any other service because this particular service is sought for the sole pupose of allowing people (mums and dads) to go to work. If I didn't have a job, I wouldn't need childcare.

???Uwila - I work for the NHS and I only get the childcare vouchers available to others if their company does it.

I meant service in like you pay someone to do your hair, ie it isn't a total necessity in some cases.

Really? I'v talked to several people who get a massive reduced rate at the nursery if they choose to use it. Like £500 a month for full time place or some other really swish deal I've never ever seen at the local Teddies, Asquith, etc.

So, you don't get this? Okay, sorry, I stand corrected then.

NAB, I don't mind it so much if you have a nanny cause it conflicts with your tennis lessons. But, for people who employ a nanny specifically so they can go to work it's outrageous.

My friend in the US deducts all of her childcare costs from her income before the tax is calculated. Every penny of childcare is tax free.

Which trust do they work for Uwila? I'll be moving hospital!!

I've only worked for 2 trusts but neither of them offered nursery discounts. Both have on -site nurseries but for some reason there are a disproportionate number of consultants kids there and not many of the lower paid staffs

See... let them cut the consultants perks. I'm such a skeptic on the NHS. So I'll shut up before I piss you off.

Espom and St. Hellier is one. And I know I've heard this about others too, but I don't know which ones.

It would be interesting though if the NHS were forced to publicise the benefits packages they have on offer...

What like putting them on the website like this..
random hospital link

Ooooh and now I've found epsom and st helier

Mentions subsidised places at several nurserys and 10% discount on one.

Oh now here's a quote I could get excited about: "We also provide the NHS final salary pension scheme which is widely regarded as one of the best in the country.
"

Re nannies salaries - I agree that £26k sounds a lot but remember that most nannies work 50 hours a week with very few breaks. If they worked a standard 35 hour week their salary would be £18k, which is not outrageous for central london.

Re NHS perks. Over 70% of staff working in the NHS are women & the majority are in low paid/ unsocial hours jobs such as nursing/ healthcare assistants/ midwives etc. There are not many workplace nurseries and those that there are exist to help reduce the cost of constantly recruiting/ retraining staff when women leave because of childcare committments.

NHS workers have few other perks - they even have to pay for their own Xmas parties.

Wouldn't it be nice if everyone could afford such perks. While we are on the subject, don't NHS employees get something like 6 months of paid maternity leave?

Now THAT would be a true luxury.

Hey Uwila - it's the pension scheme that keeps me in the NHS, and my mother (65 and still wiping bottoms for a living), and my sister. And they are re-structuring it at the moment so that new joiners can't have final salary and all sorts of other get out clauses..we'll soon be in the same mess as everyone else when we get to retirement, don't worry. Oh, and the company who were managing additional pension contributions (if anyone had any money left to buy them) went splat and took the money with them.

Hey martini - you are right, but in our case a lot of staff can't afford even £20 for a cheap christmas dinner at a local restuaurant so our staff christmas celebrations are generally very small and quiet.

Uwila - mat leave - the 'human remains' department state that we would get 6 months pay if you have worked for the same trust for at least 2 years but that is mainly the 100ish pounds per week from the government. Last time I helped a staff member work out mat pay it was 90% pay for 8 weeks followed by 50% pay for 10 weeks and then the government allowance for the remainder of the 6 months.
My dh's firm would pay nothing except gov minimum, but then repays your whole salary if you return to work for more than 6 months...he does not work for the NHS!

I am new to MN and this is the first time I have felt compelled to comment! I am an partner in a law firm. Well paid but work very long hours ( 70 plus per week ) and with a DH who is away a lot ( presently in Basra , Iraq..but I am not on tenterhooks honestly ! ). I used to have au pairs..........DD is 7 and DS is 5 but with a 15 mile commute to school and a need for reliabilty I have given up with lazy stroppy madams and have just employed a nanny. She is fab and life is now easier but its a cool £2k per month at least with all the add ons.

Beacuse I am self employed I can get no tax breaks or help like childcare vouchers. My sister on the other hand is an NHS consultant and is married to one. They have now and have always had very subsidised nursery places in the hospital creche and with rotas only work approx 3.5 days a week with the other 1.5 each for research ( ha ha ) ............which actually amounts to saving on the already low childcare costs. This allows them to buy a massive house with a cool £450k mortgage ! I wish!

Most of the people I have ever come across who have had work place creches have had their contribution means tested........but not in the NHS. Its a disgrace! Now I know why Mr Brown cannot afford to give me a tax break on paying for a nanny!

Rant over!

Sorry Uwilla - not sure what you mean about "wouldn't it be nice if everyone could afford such perks". Do you mean that paying for your own Xmas party is a perk?

I don't know enough about NHS maternity pay vs other organisations maternity pay to make an informed comment but I do know that the NHS needs to do everything it can to retain women working there.

The average annual salary of a healthcare assistant is £13782 & average annual salary of a nurse is £21332. They might as well give up and become nannies!