Pensions

[JADS]

So we have found a nanny who is happy to work pt and look after our ds with SEN - yay!

It is going to cost us £136 per week which means no NI or tax, but pushes us just into pension enrolment. It's only £3 a week which is fine but do you then need to find a pension to enrol your nanny into? It's pretty confusing.

We plan to use a nanny tax type service (any recommendations?) But to pay £100 a year to then put £40 into a pension seems bit bonkers?

Am I being naive or stupid?

Glad you found someone!
To answer your question yes you need to open a pension plan for your nanny. If you use a payroll service they will do it for you, usually for about £50-60. Otherwise they can explain how you do it yourself - but have a look at Nestpensions.org.uk for more info.

I am pretty sure pension commitment does not come in with earnings under £10k per year so at 136 per week you don't reach this level

@rosie1969 you don't have to auto enrol someone earning less than 10k, but if they earn over £118 per week (approx £6100 per year) they can request they are enroled

I think that is correct?

Time to go back and negotiate I think

That is correct. So you won't auto enrol but they can ask to join.

If they ask to join then you can do Qualifying Earnings, which would mean £6136 of income is ignored.

Regardless of if they opt in or not you must have a pension scheme available. Once you have your PAYE reference code from HMRC (can take several weeks to months to come through following registering as an employer) you can setup a pension scheme with Nest Pensions, Smart Pensions, or other providers (check fees, Nest does not charge but some of the others do).