Total cost of nanny in London

[Latinatta]

I'm struggling to work out what the total outgoings per month would be to employ a nanny full time in London, ie how to work out what tax, NI, pension etc come to on top of the hourly rate.

I'm going back to work in 10 months and will have a 10 month old and 3 year old. Nursery quote for both is about £3000/month (including the 30 free hours to which 3yo will be entitled). If I could afford a nanny for that money per month I think it would make life much nicer - I could ask her to take 3yo to the very nice state nursery school for thee hours every morning which would be covered by 30hours (she already has a place) so she still gets stimulation of a school setting and little one has more focussed care.

But I'm struggling to work out total costs. £3000/month would be very painful but keen to spend it in the best way! If we went down the nanny route and she came 7am-6.30pm I could also work compressed hours 4 days a week and be on full salary, and only need to pay for four days.

Very grateful for help with an idea of whether a nanny is totally out of my price range! Thank you.

Say £13 per hour gross x10 hours per day x 5 days per week = £650 per week plus employer's NI. Plus payroll costs, extra heating and food at home, covering her annual leave. Factor in risk of her being ill which would cost you up to 26 weeks SSP which is about £90 per week.

£3000/month is 36k a year so I'd expect that to easily cover employment costs, kitty and other little bits that you didn't have to pay with nursery, e.g. classes or clubs.

In your position, I'd just advertise what you're comfortable paying for a nanny and see who applies.

I have looked at this too - I think it's worth looking at how much it would cost once your older child starts school. We worked out that basically it would then be a lot more expensive than nursery + holiday clubs/after school care. So on balance not worth it but your area sounds more expensive than our bit of London

Hi, I’m a nanny in London. I get paid 12 pounds an hour before tax. I work 7:30-6 4 days a week.

I think you'd be looking at around £600 gross a week for a 46 hour a week live-out nanny (could you have someone live in?) so a salary of around £31,000 and a total cost to you of £35,000 including pension and your NI contributions.

Also consider you need to cover at least 5.6 weeks of annual leave.
Sick pay.
Maternity - if your nanny takes maternity leave you still need to pay her holiday pay, plus a maternity cover nanny
Payroll company
Food - you will need to provide breakfast and lunch, and possibly she will also eat dinner with the children on such a long day
Activities kitty - a couple of groups or classes for the baby, softplay, day trips
Travel costs/mileage

If you can't offer live in, I would consider someone early in their career - maybe coming from nursery or au pairing - and offer a gross salary nearer £26k. Then your cost including NI and pension would be more like £29k and you have more wiggle room for all the additional costs.

We have our nanny for 4 days week and it works out at £3k per month.

An au pair isn’t a nanny.