Where do I start?

[Herecomesmyhero]

Thinking of employing a nanny but I have no clue where to begin with the finances - how do I work out pay/tax/holidays etc?

Help!

It depends on if you are looking for term time only care of all year round care.

Your main costs as the employe are:
gross salary
employers national insurance
employers pension contribution
activity & mileage budget

PAYE calculators can help estimate some of these costs. A nanny payroll company can also help.

You then have some misc costs:
insurance - employers liability is usually part of your home contents insurance, check policy. Otherwise it is around £100 a year as a separate policy.
Food - your nanny will typically eat at least one meal at your home with your children.
Payroll admin - varies but is typically £150-250 per year.

Holiday: your nanny must get at least statutory holiday which is 5.6 weeks. If they work 5 days per week that is 28 days. Holiday is best co-ordinated with the other adults involved, so nanny gets some choice but has to take some of it when you decide.

Two choices either use a payroll service or download HMRC basic tools which calculates tax and ni register as an employer on hmrc website then each month you calculate the tax and transfer the money for tax and ni to them. You also will need to pay a pension for which i recommend Nest, again very each. Use an excel spreadsheet with gross pay, then deductions listed to calculate net pay and retain for 7 years. Hmrc basic tools allows you to print pay slips

stucknoue - good to hear that HMRC Basic Tools prints payslips, don't think it did several years back. It does not do Net to Gross does it? I guess not, so vital that parents using it agree a gross salary with their nanny.

It sounds remarkably complicated for 2days/wk! Hopefully it all becomes clearer in time...

Outsource it to a nanny payroll provider.
PayeForNannies, NannyPaye, NannyTax, Way2Paye and many more.
Outsourcing the payroll will cost around £200-250 a year. So less than £5 per week.

Hmrc does everything but you enter the gross not the net, I've never had or seen a job ever that quotes net on the ad.

If you are paying say £15000 gross it will work out tax & ni