Nanny share fees

[kwaziseyepatch]

Hi there,

Just looking for advice. I'm hiring a nanny and there is an option of her picking up another child from school in addition to mine for 3 hours out of the day. How much extra should this add to her hourly rate? Should I pass on any more of her charge to the parent given it will be at my house, how would it work with tax etc?

Also there's a couple I've shortlisted who would like to bring their own child. What difference would this make to their hourly rate?

Thanks for any replies/advice?

I'm not sure there's a rule book to cover this situation. We are in a nanny share and decided to pay 50/50 as it was easier even though this probably favours the other family. We make up for a bit by the nanny using their car - petrol, wear and tear, etc. You could add up the hours each family needs and split the salary proportionately. The hourly rate would go up a bit for more kids and down a bit if they are bringing their own child.

The nanny tax company messes up the tax every year and we have to make sure the personal allowance is split between both families rather than one getting all the benefit of it.

I'm roughly paid a 1/3 more when I nanny share (not quite, but close to) so about £3/4 more than my single family rate.

Just as an aside. A nanny bringing their own child shouldn't do a nanny share. As a nanny is only allowed to have 2 families at any one time and their own child is included in this.

Thanks both,

I didn't know about the 2 family rule, I guess that rules those candidates out if we're doing the share. Seems quite sensible to add up the total cost for those few hours and split proportionally ie 2 of my children, 1 of the other families. They'll be walking so we don't need to factor in transport thankfully.

I'll look into nanny tax and how it could work as well

A nanny is an exempt childminder under childcare law in the UK: www.legislation.gov.uk/uksi/2008/979/article/3/made
Thus where the two family rule comes from.

Minimum wage regulations can be an issue with nanny shares. Is it one job or two? Generally they are now seen as being two jobs, so minimum wage can be an issue, but in the other hand parents and nanny save on National Insurance. Could each family pay £9 gross per hour for the shared hours? If nanny salaries in your area are £14-16 gross per hour, then £9 per family for a share is probably fine.

If nanny salaries in your area are £10-£12 gross, then £9 may be seen as being a bit pricey.

Income tax should not be an issue if gross salary is agreed. Highest paying role has the personal tax allowance, other does it as Basic Rate tax.

@nannynick I didn't realise that! So if I had my own child (I don't but in hind sight) I could carry on working in my nanny share and bring my own child?

@Asleanna No you couldn't. You would be caring for a child from Family A, a child from Family B and your own child who is a child from Family C. So it would fall under Childminder registration.

I expect some people ignore the law and the regulator never finds out.

We have a nanny share. She gets a premium rate for shared hours and we split it proportionally to the number of children from each family she's caring for during this time.

[quote nannynick]@Asleanna No you couldn't. You would be caring for a child from Family A, a child from Family B and your own child who is a child from Family C. So it would fall under Childminder registration.

I expect some people ignore the law and the regulator never finds out.[/quote]
Ah OK thanks. Yes that is what I originally said but got confused when you said exempt.

I know nannies who ignore the rule but I have said informed them. Not my place to say anything though if they choose to ignore.