Please help - new nanny

[Inermis]

Please please help. I am so lost.

I am employing a nanny for the first time and not really sure regarding wages and holidays etc. Nanny will be working Monday to Friday 1pm-7pm.

1. She is asking for £12ph net. I have asked her to give me a price for gross. Let's assume she asks for £13ph gross. What payments do I need to make re. NI, pension contributions? How much will I end up spending overall?

1. How many holidays is she entitled for? Looking online it says 28 days inclusive of bank holidays. Is that correct?

Thanks!

I suggest going through nanny payroll such as nannypaye or nannytax. They can do the contract for you too.

But in the meantime an online salary calculator can help. www.nannytax.co.uk/what-we-do/free-tools-services/salary-calculator

We've used Nanny PAYE for ages. In general, the advice is to pay a gross salary so that you don't get any shocks. Also if she has other work, really important to ensure that she says you are her main employer otherwise you may end up paying more tax. We also paid extra for nanny PAYE to sort the pension out for us. We paid the minimum of 3% and she choose to pay 5 %. The paid holiday was as per government guidance - I think it is 5.6 weeks per year. We pay our nanny £12 gross which worked out for her as £12 net and we said we could be flexible with unpaid extra leave which was appealing for her - I work part time and other half can work from home quite easily so all round worked v well for us. The extras are paying for PAYE to do her payroll, contract and pension and then you have to pay taxes as well.

1. Roughly employers National Insurance is £1586

Their annual gross is £20,280. Doing pension on Qualifying Earnings, your paye 3% of £14,040 so £431.20 Payroll and pension admin may cost £200-£250 if you outsource that. So before cost of activities/mileage, you have total cost of £22,537.20

1. Yes that is correct. There is no automatic entitlement to not working on a bank holiday.

Probably worth having a chat with a nanny payroll company even if you end up not using them. They can do you a cost estimate so you can compare what their more sophisticated systems say compared to my rough estimate.

£12 net is probably nearer to £15 gross. Definitely agree a gross salary.

At £15 gross your cost goes up by around £4000. Haven't done the full calculation but it expect it to be around that figure as gross pay goes up, employers NI goes up and pension contributions go up.

I think it's important to find out whether she's planning on doing other work in the hours as this will affect the difference between the gross and net salary you agree on. Our's was a freelancer - she was self employed in creative work and as we only needed about 15 hours per week, it worked well for her as she had the financial boost and job security from us while she built up her career. She worked for us for 8 years and left when she was making enough money from her creative work. So, because she was otherwise self employed, her gross pay worked out the same as her net pay which she was happy with.

Always gross. Even more so as she could find am work

She may want £12nett but what figure do you want to pay

Always contract gross so that if the nanny gets other work your cost will not change.