cost of nannies or advice for 2 children

[WhimsicalWinnifred]

Hi everyone

DD goes to a cm 8-6 every day. This costs over 700 a month. She will go to school in sept ane although I've not yet had a quote, I believe that it will go down to around 500 a month. (Before/after school and holidays) £4 an hour

We are thinking of having a second which I believe will be around 800 a month. This will mean total childcare is 1300-1400 a month. We both receive childcare vouchers but no additional support.

I believe au pairs cannot legally look after a child under 5 full time?

Thinking of cheaper ways to do it. Would a nanny be cost effective? I imagine not as I believe they earn around 30k a year?

Any advice on how to cut costs would be great. That cost is effectively my salary. Thanks

Located in Northamptonshire if that helps.

It's very expensive. We pay nearly £40k a year gross here but I'm in London. That's full time with her netting £10 p/h and we are her only employer so we get all the personal allowance. Add to that activities etc for your younger one who won't be at school and food etc for everyone. I'd say it's the most convenient but most expensive childcare option. How about a nanny share with someone at the new school?

How would I find out about that? My contact with the school will be very limited and as we are new to the area, I don't know any parents. I will have a quick look at childcare.Co. uk as I bet they have nannies too.

So £10 net would be average? Is it complicated with tax or do they go self employed and sort it? I imagine that's a personal thing for each nanny to decide?

Unless we share, I think it will be far too expensive.

Nannies can not be self employed as you are telling them when and where to turn up etc you will need to register as an employer and pay their tax and ni on their behalf from their gross wage plus employers ni on top.

I am also in Northamptonshire - all in, we paid £18000 in 2015.

This was for 2000 hours childcare (the days/times aren't set so we came up with this amount for the year and then marked against it), nanny paye payroll, contract, NI & Employer's tax, kitty, mileage.

Def not the cheapest, but by far the least stressful.

In Northampton a live out nanny I would expect would be on around £9-£10 per hour gross.

8am-6pm, 5 days per week = 2600 hours per week.
If agreed pay of £9.50 gross per hour, £24,700 gross.
Employers NI £2289.14
Working weeks = 46.4 possibly 46. If £5 per day expenses budget, then £1150 expenses annually. There would be other expenses such as mileage if they use their car to transport your children.
Payroll admin is £180 if done monthly via NannyPaye.
There would be no pensions scheme at this point, as you would be a new employer. Depending on when you became an employer, pension scheme would start November 2017 or later. When it does start, it would probably be at 2% of earnings (above qualifying earnings threshold) so pension contribution of around £380 per year. Pension admin £60.

So you are looking at around £28,800 for a nanny in your own right.

Is it complicated with tax or do they go self employed and sort it?

No they are not self employed. You can use a payroll provider who will do the tax side of things for you, leaving you to manage your nanny day to day, track holiday, remember to pay them when the payroll company tells you to.

In 2017 Tax-Free Childcare starts. With 2 children you could save up to £4000. Mumsnet: Tax Free Childcare

So, will that be £13-1400 a month for two children with a childminder or about £2400 for a nanny? Have I worked that out right?

A childminder would probably charge before/after school only for school aged child, so the cost is likely to be quite a bit lower than a nanny.

Yes the childminder will only charge before and after but that is still 20 hours a week.

Hmmmmm, looks like this is definitely not thw way to go.