Nanny with child, london - what gross rate?

[Cherrymix]

Sure this has been covered somewhere. I pay my normal nanny £10 gross per hour for 2 days a week. Does £8 gross per hour sound okay for a nanny with her own child? As she's only going to work about 14 hours for me she wouldn't pay much tax anyway so it probably works out about £7.50 net.

We aren't central london but aren't far out.

In a similar situation I paid a nanny with own child 80% of the normal wage so I would say that it sounds fine.

a friend of mine is a nanny way outside of London....

she gets nearly £380 net per week and takes her own baby to work... which i guess is about just under £500 gross, so its still nearly £10 gross per hour with her child

I would say it sounds fine Cherrymix. As it is in effect a nanny share, I feel it should be a reduced rate - just my personal view of course.

I am often surprised by London wages, as I'm less than 30 miles form central London, yet I get around 30% less salary (than the nanny with own child that NannyL mentions) - yet my cost of living I bet isn't 30% less!

I too am pretty surprised at NannyL's friends wages.

Sadly I think the whole nanny wages market is distorted by employers & nannies who are prepared to pay & accept cash in hand. I had a candidate for my job who told me her last job was £10 ph cash in hand! No way a law abiding tax paying employer like myself could afford that kind of money.

The point is NannyNick that if you want to buy a house/ have a pension etc you will be ok. Also, as I work for the public sector, I always tell my nannies that if I don't pay their taxes I can't pay their salary.

Rant over

if you knew my nanny friend you would relaise she is worth every penny!.... hence they pay her what she wants in order for her to stay

Cherrymix- you are absolutely right. You're looking at £8.50 per hour net min. That's £495 a week on a ten hour day for four day's work, with tax and NI. This includes glorified au pairs with six month's mothers help experience. We have found someone, but we can't do the number of days we would like, we have to have more nursery days. So far she's agreed to this - thankfully.

Am hoping Nannynick will tell us we've calculated these numbers wrong...would like to hvae more days!!!

Don't agree a net wage... it's a nightmare.
£8.50 per hour net, 10 hour day (thus £85 net per day), assuming standard tax code, then 07/08 tax year it is roughly:
Gross Annual: 23,452 (451 per week) - see ListenToTaxman.com Employers NI is 44.93 see E-Gismos UK PAYE
Cost to employer therefore £495.93 per week - or put another way about £12.40 per hour.

So alas Harriet, you have calculated your figures about right.

£8 gross, for 14 hours, would be £112 a week, £5,824 per year, net pay around £4,741 per year assuming the person has another job using all personal tax allowance (thus this job on BR code tax rate). Employers NI of a little under £77 per year. For employee, this works out near to £6.50 per hour net - as it is on BR tax code. If it was their only job, then it's about £7.80 per hour net.