Nanny help

[bustylil]

Hello,
Sorry I am new to this whole thing so please bear with me.
I need to employ a nanny, 15 hours a week.
I have been told if I enpmoy am Ofsted registered nanny I can get some money back towards childcare (I'm a single mum).

Anyway, how does it work in terms of tax, ni etc?

If I have to pay all this in top I'm not going to be able to afford to work.

I saw that there are companies online which can provide payslips and contracts etc but I just dont know where to start.

Also, if I can claim it back, can I claim back against all of it, or just what the nanny gets after tax? Will the nanny even need to pay tax if only working 15 hours?

I'm so confused, and then someone said i would have to pay into a pension, holiday pay etc my mind is mangled, I cant even afford to pay into my own pension. Please help

I had a nanny 10 years ago and rules have changed re having to provide a pension etc but yes, I did have to pay sick pay etc and I think you will have to provide a pension. Best thing would be to talk to Nanny Tax or one of the payroll providers. It was very easy - they worked out what I had to pay to her, and what I had to pay for her tax and NI. They will presumably tell you what your statutory pension contributions will be too. It's not a cheap option! I have four children though so it was cheaper than nursery fees x 4.

Why does it need to be a nanny not a nursery / childminder? Do you need unusual hours? Some agencies provide for example post school nannies but it depends where you are.

You may be entitled to join the tax free childcare scheme, for every £8 you pay in the government adds £2 up to a total of £2000 per year per child.

This can then be used against a Ofsted registered nanny, childminder or nursery.

Nannies usually work in gross pay but you may find the odd few who still work in net - it's best to work in gross pay when discussing salary as this will be almost the final amount you will pay out per week (plus the employer NI)

Nannytax calculator isn't very useful, work out a few different salaries to budget for what you can afford to pay a nanny.

In London you'd be looking £10-£18 gross per hour for a nanny depending on experience and location. Nannyshares can work well if looking to keep costs down as both families must pay minimum wage so could be as little as £8/9 per hour.

I've worked in childcare for 10 years should you have anymore questions.

Meant nannytax calculator 'is' useful

15 hours a week is not many hours for a nanny.
11-12 hour days are the norm for a live-out nanny.
So your job would need to fit around a nanny's other work.

Do you want a nanny for 5 x 3 hours ??
These jobs are very difficult to fill, so command a higher rate of pay.
Home counties you are looking at £11 to £13 gross for a nanny. For just 3 hours a day maybe £13 to £15 gross.
Gross means her pay before her tax and NI is taken off. You would pay that on her behalf. On top of that you will have employers NI contributions.
You will also have to factor in statutory sick pay; were she to be ill for four days or more. This is paid by you and NOT refunded by government. Not sure exact amount but @ £80 per week. Can need yo be paid for 28 weeks. Maternity pay, but this is refunded by government. Redundancy if she works for more than 2 years for you.
Pension although not sure about amounts this involves as if less than a certain amount of pay she/he may opt out.
On a daily basis you will have heating costs to your home. Home insurance cost for employers liability. If the nanny uses her car to transport your children she will charge mileage to cover petrol and running costs, wear and tear, valeting of her car. Usually 45 p per mile.
If you want her to be Ofsted Registered you will need to pay the fee £103 per year. Unless she has another job and maybe you can negotiate with her to pay a portion of the fee.
Please agree a Gross rate , very very important or you could end up being liable for alot of tax if she has used her allowance with another family.
So .... do you really need a nanny , childminder would be much cheaper for your hours. Or if one child try to find someone to share a nanny.