Nanny wants a net wage contract

[SouthLondonDaddy]

We are hiring a nanny. She seems great - the only problem is that she wants a contract that guarantees her a NET salary.

Do you have any recommendations on how to explain to a person who doesn't understand how taxes work why agreeing a gross salary is fair and is not an attempt at messing with her?

I'm not after a technical explanation (I don't need that, I am familiar with the details) - I am after some communication tips on how best to convey what is a banal concept to me but what seems very obscure for her.

We said no way, we'll guarantee a gross salary, but we cannot be held responsible for unpaid taxes, student loans, or any other changes to her tax situation which would be beyond our control and which would affect her taxes.

We have tried to explain why it's sensible for both parties, and we have also tried to explain that, since this year she has been unemployed until now, her net pay will be higher this year and lower the next - banally, this year a greater % of her income will fall under the tax-free band, simply because she won't have been working the full 12 months.

She will have none of it. She just does not understand how taxes work; all she understands is that her net salary will be lower the next fiscal year, and thinks we are trying to mess with her. I have pointed her to this useful article but nothing
www.nannytax.co.uk/employing-a-nanny/paying-your-nanny/gross-vs-net

Any tips?

The only response so far has been: but all my previous employer agreed to it. Well, that's hardly a valid reason - lots of people do lots of non-sensible stuff!

Glad you didn’t go with her

Tho I would have been wary if she hadn’t worked all this year - what had she been doing

Nett was very common up to maybe 10yrs ago

Many then went to gross

But sadly still lots is nannies who state they want £10 nett etx

Very frustrating! And I totally agree that mostly it works against the nanny as they don’t get advantage of changes in tax bands/ Tories bribing the population with tax cuts etc! it’s such an outdated and paternalistic way of paying a grown adult, as if you are giving them pocket money and saying don’t worry your pretty little head about those mean taxes.

I thought it was fairly common for nannies to have their pay quoted as a net amount. I've never understood why but I believe there are many payroll agencies that can handle the financial side.

I expect she was just asking to be paid in a way she is used to. It doesn't seem like you have got off on the right foot though so probably best for both you and the nanny that you don't take this any further.

Yes till about ten years ago it was common for nannies to have nett

Even though it was common, it's good to move with the times and be like any other adult. Also think about taxes or pension contributions etc.

Net was common because a lot of employers didn't pay tax/ would only pay a half tax etc. Some still don't but happily as it has become less common.

Apologies. When I posted my previous post, for some reason a load of the updates weren't there, so my post looked like I hadn't bothered to read them. I think you we're right not to offer her the job if she already didn't trust you.

Lucky escape. I once hired a nanny with a contract that stated her gross pay, off the back of an ad that also stated gross and explained that this meant "before tax". All fine, she seemed great. Then Friday came and I got a 2 page email from her about how her pay slip was wrong and I was a fraud who was stealing her money because supposedly I get some sort of tax rebate from being an employer...no amount of explanation made any difference, she refused to come back. It was utterly horrific and I lost a stack of money via not having cover. Never again!

Yep, good move op. We are going through a grievance procedure as our nanny is adamant about being net paid and it broke the relationship totally.

She just does not understand how taxes work

I want an adult to look after my children. No way would I trust someone that dim with them.

she seems to be an idiot. How can anyone not understand how a salary works? She seems to think she is a babysitter who is handed 20.00 at the end of two hours work. Glad you didn't go with her. This is the result of nannies being paid in cash off the books for many years.