Self-employed nannys

[Millarkie]

Ok, so I know that nannys can't be self-employed but after umpteen conversations with former nanny she still doesn't believe me because her friend is a 'self-employed' nanny.
Friend was employed by our neighbours who refused to pay tax/NI and she now nanny shares with another couple of families - not sure if she has children from all the families at the same time - tends to be 2 out of the 3 most days..the other families pay her original employer rather than the nanny direct. Any way - I'm quite happy at leaving that mess as being someone else's business BUT the 'self-employed' nanny has been telling our ex-nanny that she will get more money if she is self-employed (eg. s-e nanny is putting her driving lessons/car down as business expenses)

So, does anyone know where I can find this decree on the legality of s-e nannys so I can print it out for ex-nanny??

Thanks

I would strongly advise keeping well out of that mess!

Alas HMRC are not very forthcoming regarding this issue. As they would evaluate every case on it's own merits. The Status Officer at the local tax office may tell you something, but you are unlikely in my view to get it in writing.

However, a Scottish nanny agency did manage to get a letter from HMRC regarding Self-Employed Nannies - and they posted it on the NannyJob Message board. Probably not supposed to link to it, but hey in this case I feel it is in the public interest.

Letter to Nanny Agency from HMRC regarding Employment Status of Nannies

The letter says:
"From the Revenue's point of view, nannies working in the family's own home are regarded as employees."
The letter reference is: COMP/LZ66170/JBH
Issued by Centre 1 Area Compliance, Queensway House, East Kilbride, G79 1AA.

Showing your nanny that document may be sufficient to inform them that they can be self employed when working for you.

Opps, meant CAN NOT BE SELF EMPLOYED when working or you

Oh I wish we could have an Edit function!

Ta nannynick - It is a bit of a mess isn't it - just don't want ex-nanny to get into more of a financial mess than she's already in! (Not, I hasten to add, that she hasn't been well-paid, she just hasn't got a head for figures etc)

I'll try one more time then I'll have to accept that she makes her own decisions.

Remember that she would have been offered the job on the basis of it being paid via PAYE. So if she still insists on being self employed, then her employer does not need to change the way in which they pay her. If she doesn't want to be paid PAYE, then she can find alternative work. Make sure she understands that it would be a change to the contract and thus the contract could be cancelled. Good luck convincing her.

it is also worth pointing out that if the nanny defaults on her tax and Ni and the revenue decree that she was actually an employee-it will be the employer that the revenue chase for the tax and Ni that they will calculate!