Nanny share and NMW

[DoubleHelix79]

I'm starting to look into the possibility of a nanny share for when I return to work following mat leave and have become somewhat confused by the NMW requirements associated with a shared nanny.

As far as I understand each family must be set up as a separate employer, and each family must ensure that the nanny is paid at least NMW by EACH family. Would that effectively mean that on days where the nanny cares for children from.both families at the same time they must be paid at least 2 x £8.91 gross per hour? This would seem to be considerably above local gross rates.

A related question is then whether it would be legal, fair and advisable for each family to pay for separate days (e.g. 2 days per week each), but for the nanny to care for children from both families at the same time.

I am aware of the need to pay tax, NI, pension etc. By the way and am reasonably clear about that aspect.

Thank you - I am becoming more confused the more I google.

We have a nanny share and I think officially we each employ her for 2.5 days per week but she looks after the children from both families for all 5 days.

@eurochick

We have a nanny share and I think officially we each employ her for 2.5 days per week but she looks after the children from both families for all 5 days.

That's really useful, thank you! I wasn't sure whether there are any insurance issues with this arrangement, or leave us open to potential fines. I'll definitely reach out to a specialist HR/tax provider, but this gives me hope that we maybbe able to pull it off.

We use an external provider to sort the tax, etc. They also provided draft contracts for the share but they were pretty poor so we amended them (we are lawyers so we were comfortable doing that).

@eurochick

We use an external provider to sort the tax, etc. They also provided draft contracts for the share but they were pretty poor so we amended them (we are lawyers so we were comfortable doing that).

Can I ask which provider you used? I'm pretty used to drafting / reviewing contracts but would prefer not to have to amend too much.

@eurochick

We have a nanny share and I think officially we each employ her for 2.5 days per week but she looks after the children from both families for all 5 days.

How does that work

Are you both paying her nmw for the 5 days worked

If she works for you both 5 days then surely you are both her employee for all 5 days

The system isn't set up for two employers to employ someone simultaneously - that's what would reflect the reality of the situation. But there's nothing to stop a nanny looking after children who are not the biological children of the employer. Outside a nanny share nannies will often look after other children on playdates.

Each family can employ for half a day, with the nanny caring for children from both families.

So the nanny could be paid say £14 gross per hour by family A for 5 hours, then £14 gross per hour by family B for 5 hours.
Whereas if each family employed the nanny for 10 hours every day, they would be needing to do NMW so lets say that would mean nanny getting £18 per hour.

By each family doing the employment for part of the day, or part of the week, it can reduce the pay the nanny gets but means that pay is well above NMW for the job.

In some parts of the country a nanny may expect £12-£14 gross per hour when doing a nanny share. In other parts of the country they may expect £20 gross per hour. So each family individually employing the nanny the entire time does not work well in all situations. As long as all involved are happy with the situation and no one feels they are being taken advantage of, then having the role as caring for children from family A and family B with one family paying that cost, the it switching at some point in the day/week is fine.

Thank you very much @nannynick

Would that effectively mean that on days where the nanny cares for children from.both families at the same time they must be paid at least 2 x £8.91 gross per hour? This would seem to be considerably above local gross rates.

Local gross rates for a nanny share? What area are you in? In London a share is £18-20 gross ph, single family £14 and upwards

@MolyHolyGuacamole

Would that effectively mean that on days where the nanny cares for children from.both families at the same time they must be paid at least 2 x £8.91 gross per hour? This would seem to be considerably above local gross rates.

Local gross rates for a nanny share? What area are you in? In London a share is £18-20 gross ph, single family £14 and upwards

We're not in London. Reasonably experienced candidates (e.g. with several years experience working at a nursery, and some formal qualifications) can be had for £12 per hour gross - I've recently interviewed a few. This is not via an agency - i suspect you'd pay more.

@nannynick

Each family can employ for half a day, with the nanny caring for children from both families. So the nanny could be paid say £14 gross per hour by family A for 5 hours, then £14 gross per hour by family B for 5 hours. Whereas if each family employed the nanny for 10 hours every day, they would be needing to do NMW so lets say that would mean nanny getting £18 per hour.

By each family doing the employment for part of the day, or part of the week, it can reduce the pay the nanny gets but means that pay is well above NMW for the job.

In some parts of the country a nanny may expect £12-£14 gross per hour when doing a nanny share. In other parts of the country they may expect £20 gross per hour. So each family individually employing the nanny the entire time does not work well in all situations. As long as all involved are happy with the situation and no one feels they are being taken advantage of, then having the role as caring for children from family A and family B with one family paying that cost, the it switching at some point in the day/week is fine.

How would this work tho if kids get hurt

Tech the nanny isn’t looking after them

Would ofsted or their pli like that

Sounds like a swindle to me

To have nanny of own pay £14 gross

To have shared nanny so £9 to make easier for costs

So 10hr day £70 v £90 plus employers ni

@DoubleHelix79 We're not in London. Reasonably experienced candidates (e.g. with several years experience working at a nursery, and some formal qualifications) can be had for £12 per hour gross - I've recently interviewed a few. This is not via an agency - i suspect you'd pay more.

Yes but I expect that rate is for a single family, not a share. I'm in a few UK nanny groups and rates obviously differ by region, but only by a couple ££ per hour.

A share is always above the cost of single family rates. That's to make it appealing to a nanny (while allowing each family to save a few ££) as having 4 bosses is much easier than having 2, plus all the additional struggles of working across households and multiple kids etc.

Perhaps hiring a family on your own is the way to go for you, though paying £9 ph gross being part of a share is obviously much cheaper than paying £12.

If you can avoid nanny sharing, I would

The best thing about the nanny is the flexibility for her to accommodate YOU and your family
Ie you back late, need to start early, need to take your son to the doctors etc