Nanny has another job - tax code?

[fridaseyebrows]

Hi - am hoping @nannynick or someone similarly knowledgable can help!

We are hiring a new nanny who will do afternoons with us 5 days a week, and mornings 4 days a week with another family nearby (who we don’t know). She previously worked full time jobs so is new to this share arrangement.

She asked for a net rate with us and I declined, explaining I would only agree a gross rate as I didn’t know the situation with her tax code etc. She didn’t understand the implications, I have talked her through the point and I think she understands. I don’t know what agreement she has with the other family.

When we had a nanny share before it was a different set up as our nanny had both families children at the same time so we agreed a rate and arrangement with one family with the whole personal allowance that was fair overall. My payroll company have suggested this time around that we share information between the two families and split the tax code between us based on the relative time with each family. I am reluctant to do this as I do not know the other family, and obviously we can’t guarantee that she wouldn’t change jobs in the morning, do something different etc etc.

From reading other posts here and online, I didn’t think it was common to split the tax code? It feels like something that HMRC could easily get wrong. What is usual in these circumstances? In either situation if I stick to my guns and only agree a gross rate then we are protected overall?

Thanks!

I'm no expert in the nanny industry, but usually it would be down to the employee to contact HMRC to ask for a split tax code. HMRC can do it automatically but it takes a couple of months for their system to catch up, in the meantime she could be taxed at basic rate (she will get this back if she overpays).

You don't know what the other employer has agreed or the salary in that job, so you are right to agree a gross pay rate.

It is highly possible that tax rate would be 20% at least initially. The nanny can ask HMRC to split tax code if BOTH their jobs pay under personal tax allowance. HMRC may or may not agree to do it. Any split could increase costs for any employer on a net wage agreement.

All you can do is say: I will pay x gross. You can not say what the nanny will get take home as it will change.

The payroll company are giving wrong advice.
It is up to the nanny and only the nanny how her tax code is split.
The two jobs are separate employment and you should not need to share information with another household. Data protection laws etc.
You are right agree a gross rate.
I have had separate jobs and at one time HMRC split the tax code. It makes no difference you pay the same tax at the end of the year.