Nanny holiday pay accrual maternity leave

[Dingdingdong]

Hi all

Pretty sure I he this right but wanted to double check - I have a nanny on mat leave who isn't coming back to me. I know she accrues holiday and bank holiday on mat leave and I pay that ( as in can't recover it). I think I am right that this isn't at SMP rate but at her pre mat leave pay level?

Only asking because it is a lot of money to find ( I had a generous holiday provision) on top of paying my replacement nanny! Obviously no-ones fault but am slightly gulping at the amount I think it will be!

Yes, that is my understanding of how holiday pay would work for someone on maternity leave. Talk to your payroll provider.

Yes. We are in the same situation too except she is currently also sick prior to maternity. She is worth every penny but it is a lot of money. Have you claimed back the smp as I wondered how this works in practice?

Yes the holiday she has accrued while on mat leave is payable at her normal rate not the mat pay rate. So if she works 5 days a week and has had a year off, she would be owed 28 days of full pay when her mat leave finishes.

Thanks that what I thought

5am yes our nanny was sick for the first three months of her pregnancy, she is lovely and we are still good friends but the sick pay and holiday accrual has cost me all the savings I had and more, several thousands of pounds. It is so annoying we have to pay out of our net salary as opposed to out of gross like other small emploers. It really does add up. On SMP - you put in a claim and get a lump sum at the start from the government, which you then pay out each month. The amount really varies each month so you do need to check every month - it's quite complicated so definitely easier to have a nanny payroll provider.

Thankyou. Yes our nanny works 2 days a week and I worked out that if she is off sick until mat leave and then takes a year off it will cost us around am extra 4k. I completely agree on the net tax point and often harp on about it to anyone who will listen.. nannies are quality childcare and facilitate people working. Surely it is for the benefit of all to make this childcare option more affordable.

Whilst still a way off yet, when the Tax Free Childcare scheme starts, will that be of much help? Or do you earn too much to qualify, or have children too old (think it is up to age 11 ish), or for some other reason can't use the scheme? Do you think it will be better/worse than childcare vouchers?
I wonder how it will work with having a nanny on maternity leave and having a temp nanny, I guess it increases the childcare cost so in theory means a bit more money from Government but I expect the £10,000 per child cap may be an issue.

No I would definitely qualify Cindy - will be interesting to see if it does definitely come in. Would be much better for me than childcare vouchers ( I think childcare vouchers used to be much more helpful but then were cut down before my first DC).

The difficulty with maternity holiday pay is it is on top on paying other childcare ( and is also subject to tax and NI), also you can no longer reclaim stat sick pay ( I have a good full pay sick pay in my nanny contract too). I appreciate I am lucky to be able to afford a nanny but I think the sick pay and mat holiday pay will cost me nearly £8000 - I'm not arguing that my nanny shouldn't be entitled or begrudge her it in any way it's just a lot extra to find on top of paying my new nanny!

Why does anyone have a contract with full sick pay in it, this is not normal these days, most pay SSP only

ice it wasnt unlimited full sick pay, but it was a couple of weeks. Most people are honest and don't unecessarily take sick days, if possible it is preferable not to have someone worrying about losing pay when sick. It was never a problem for me until the pregnancy.