Nanny share cost help

[Iggleonkupsy]

2 families, let's call them family A and family B.
Family A - requires all day care (probably 7- 5) they have one child (2 years old)
Family B - requires care from 8 - 5 and have 2 children (1 year old and 4 year old) however, the the 4 year old will be at school during school hours (let's say 9-3ish)

How much should each pay?

Whose home would be used? Who provides food? Who provides equipment such as double buggy?
Try to look at where the costs occur.

I would work it out in total childcare hours needed, so 1 hour 7 to 8 am, 3 hours 8 to 9 am, 2 hours for 9 to end of school etc, and divide nanny wage by total hours, with each family paying for their share of the hours they use.
Seems fairest, but like PP said, there will be other costs.
How will you manage the nannys holiday entitlement?
What if nanny or dc are sick?

All these things need careful consideration and agreed upon in advance imho

As @FunnyInjury says but take into account costs so if family b are providing food, facilities, toys etc then that should be factored in. I'm guessing the school aged child is around in the holidays too

I am the nanny, I'm not sure what to do in this scenario with charging. Alternate houses so no issue there. Equipment a non issue too as everyone has spares.
It is just figuring out who pays what. It isn't a case of just my hourly rate as obviously hourly rate for when 1 family is less than a nanny share rate.

I'm not sure I understand OP, do you mean that you will charge different rates depending on if you have the single dc or the two families?

The parents need to come up with the salary, not you. You need to have something in mind for what you need to earn but I would not get too involved with how the parents decide how to split the costs between them.

You may want £17 gross per hour. The parents could then split that between them, maybe one paying £8.21 and one paying £8.79, so they avoid any issues with National Minimum Wage if they run two separate payrolls (which can save them and you National Insurance).

Consider how much you want to earn in total, per hour, per week, per month, per year. Leave it up to the families to decide on how to split it between them.

I agree with nanny nick. You’re a nanny and not a self-employed childminder. Have the families not offered you a salary? You can tell them what salary you’re expecting and they need to work it out themselves.

Thanks Nick, that is really helpful!

I will leave them to decide how to split the pay then :)

To answer a few questions:

1. In the nanny world it is common to earn more per hour for 1 family vs 2 families. The nanny gets a bit more per hour and the families also get a saving. My question was more about how to split that if one family has an extra child as I've always worked nanny shares where each family has one child each so the pay gets split equally.
2. No I'm not a self employed childminder. But I do get some say in what I expect per hour, I can then decide to accept if theh offer less or they can accept my rate. That again is very common.

Sorry to be vague but this is a hindsight scenario as I already work for one family and there is potential to add in the other family sometime next year.

I would just state what you need for the new hourly rate and let them work the rest out. If they ask for advice, politely decline and say “well that’s really up to you all to discuss what you feel is fair”.

Your current family will want to pay less than they do now, otherwise what advantage do they gain by being in a share? So that gives a starting point as they may want to save 30% maybe more.

A nanny isnt based on per child. Its per family.

I would personally split the wages half and half. As the hours are near enough the same
But sit down with both sets of parents together and discuss.
You will need two separate contracts
Nannies are paid net. The parents pay your tax and insurance.
You pay for liability insurance

Thanks all, great to have different options :)

october I definitely charge over family rather than per child when I am working for a single family. I just want sure if it was different if nanny sharing with a different amount of children in each family.
I'm thinking half and half is the best way forward.
Yes thanks I always have separate contracts and I work in gross :)

I always worked NET per hour as a nanny....
But whatever suits your needs

Good luck

I was a nanny in a nanny share I'd have x rate for when I just had one family and y rate when I had both and y rate was split 50/50

OctoberLovers
The advice is never to agree a Net salary always Gross. This protects you as an employer. If you agree Net and HMRC decided the nanny owes tax from previous years you would be liable for that money.
Look at the payroll companies advice if confused.

Thanks all. Some really helpful tips!

And yes to what cora said about net VS gross..

Im not confused.

Iv done this for about 10 years and never had a problem..

This is the way i choose to do it

I was the nanny!

Hi october have a read of this. It explains why we should agree a gross rate.
Apparently it was common to be paid in net before I started nannying (I started about 7 years ago) but more and more people are realising why it is better to go gross.

www.nannytax.co.uk/blog-1/the-ultimate-guide-to-net-vs-gross

I dont do it now, anyway....

But always went NET. Thats just what i preferred