Part-time nanny

[HarrietTheSpy]

What is the deal with part-time nannies if they then get offered a job for the other days they are not working for you? If you've agreed your contract gross are you protected against extra payment?

I'm trying to get my head 'round tax allowance issues. We've met someone who is great but agreed a slightly higher salary with her. It's right at the top of our budget. We really need to make sure that we don't inadvertently have to pay more later if she gets another job. The tax people are saying no you won't if you agree a gross wage, but in practice it seems like these things do get rejiged between families. Can we just say no?

We had a similar situation - so I hope I can help.

If you have agreed a gross amount - will you still be calculating and paying her tax to the Inland Revenue? If so she will need to give you her P45 and you will deduct her tax and NI from the gross amount you have agreed and give her the difference (i.e her Net). If she then takes another job while working for you she/you will need to work out how the tax/NI are then deducted as she can only use her personal allowances once. Our nanny was paid a net amount and we paid the tax/NI over on top if this - when she took a second job we remained as her main employer and therefore retained the allowances and she was paid from her 2nd employment at standard tax deduction rates - but this is clearly more expensive for the 2nd employer so this would need to be considered carefully. We were responsible for submitting her end of year returns for the monies that we had paid and her other employer (which was a company) did the same.

Thanks for your message. We're agreeing a gross amount which incorporates tax and NI payments. We are going through a nanny tax service which is handling the payroll and exact deductions etc. She would be with us for three days, so it's likely we would remain the main employer. But the thing is - when you say this would need to be considered carefully - by whom? Can we say other arrangements are nothing to do with us, as we've agreed a gross amount in her contract?

As you are paying a gross amount and arranging for the deductions I actually think that it is your nanny who would need to think about how she managed a second job and yes I think it would be reasonable to say that as 3 days per week you are her main employer and she would need to arrange any additional income outside of this - it wasn't any issue with us - we like you I think were happy for our nanny to take another job and she was open about it - we just said up front that we were to be her main employer and would do tax/NI and the related end of year returns accordingly. Good Luck to you.

the reason I ask is it feels like this sort of thing gets re-negotiated. but i guess we're covered if we've agreed gross and not net in the contract.

I hadn't thought about the end of year returns - will need to ensure the nanny payroll people can help with that..

Agree a gross wage, not net. If nanny gives you a P45, then consider yourself as the main employer. If you get asked for a P46, then you will probably be secondary employer (as they have not left another job, thus don't have a P45!).

I nannied 3 days per week, and temped for a nursery agency 2 days per week. My nanny employer was my main employer. Nursery agency was secondary... and used BR tax code. Didn't hear from either employer about there being any problems with tax/ni.

If any tax coding changes are needed (which I doubt, unless nanny agrees with tax office for a split tax code), the tax office will inform you, and as you have agreed a gross wage, it won't make a difference to you as the employer - the only difference may be the amount you pay to nanny/tax office (the total amount remains the same). Does that make sense? This is my understanding of it at least.

Oh another thing... don't get confused with a nanny share. A nanny working for two different families, on different days is not a nanny share - they are separate employments. A nanny share is only when the nanny cares for BOTH families children at the same time (there has to be some overlap). So if the situation crops up, don't let your nanny tax service start thinking it's a nanny share.

excellent nick
thanks for your advice - well said about the nanny share vs two sep employers.