Would a nanny's Xmas bonus affect her Universal Credit?

[idontknow54789]

Just that really. We employ a nanny three days a week (she's self employed as she also works for other families the rest of the week) and was going to give her a Xmas bonus equivalent to one weeks pay but now I'm thinking that might affect her universal credit which I know she also claims. Does anyone know if this is the case? Should I give her vouchers instead? - I'd rather do money as I know it'll be more useful to her but I don't want to mess anything up.

I would get her a voucher or give her the cash. That's very kind of you

Yeah I'd do cash in hand, or a supermarket or highstreet gift card.

Yeah it would impact her UC payments. As others have suggested, a voucher or cash in a card is a lovely gift and ensures she gets the full benefit!

Nothing useful to add other than you sound like a really lovely and considerate person. Lovely display of festive cheer

Yup, Cash in a card as a Christmas Present rather than a works bonus

That's a lovely thing to do.
I would be putting the cash in a card and wishing her a
Merry Christmas 🎄🎅🎄

Years ago when I was a teenage mum I had a cleaning job. The couple gave me £50 at Christmas I thought I had won the lottery. I was able to buy dd a toy kitchen and lots of small presents it was the best feeling. Every time I looked at the kitchen years later I always remembered them.

Sorry to be a spoilsport, but vouchers and cash from your employer are just the same as if you paid it in the nanny's payroll and should be taxed. A non cash or non voucher gift would be free of any tax implications.

I do find it a sad state though that someone presumably working full time as a Nanny so a job that requires a level of responsibility is still on UC. Not in a "she shouldn't get them" but in a "how have we gone so wrong that she needs them"

Completely agree SleepingStsndingUp

OP yes, definitely cash in the Christmas card.

Cash or a voucher and I think it is a lovely idea. We give the cleaner a weeks salary at Christmas. Sometimes it is the little things that make a big difference

Cash or a voucher let her enjoy your kind gift.

@BirdsBirdsBird

Sorry to be a spoilsport, but vouchers and cash from your employer are just the same as if you paid it in the nanny's payroll and should be taxed. A non cash or non voucher gift would be free of any tax implications.

So you're saying any birthday/Christmas money you get in a card from your granny for example, should be declared? Come off it.

Cash in a card, signed from the DC, so it isn't technically coming from you as an employer *

*SW1 is not a tax accountant or lawyer

Give it to her in cash in a card and it's up to her if she declares it.

Sounds unlikely that a nanny who works 3 days a week is self employed though.
Do you set her days and hours or can she choose when she works?
Is she able to turn down days or send someone else in her place?

No of course not, but your Granny is not your employer! Otherwise all employers would be able to hand over cash and claim it was a gift and thereby avoid NI and tax. I can't help it if you feel that the law is wrong - I didn't make it, I'm just letting the OP know so she doesn't end up in a tax messs.

Put cash in a card

Brilliant sw1

Cash in a card.

@SleepingStandingUp

I do find it a sad state though that someone presumably working full time as a Nanny so a job that requires a level of responsibility is still on UC. Not in a "she shouldn't get them" but in a "how have we gone so wrong that she needs them"

Yes, this surprised me too. I thought nannies were really expensive.

Thanks everyone. Cash in a card it is then. She's self employed so up to her if she wants to declare it for tax.

@idontknow54789 a nanny can't be self employed, you are employing her and are responsible for her tax and NI.

Sounds unlikely that a nanny who works 3 days a week is self employed though.
Do you set her days and hours or can she choose when she works?
Is she able to turn down days or send someone else in her place?

This OP. The fact she also works for other families is completely irrelevant. And if she gets caught you would also get into trouble with the authorities.

There is no way a nanny that works FT (she can’t be far off if she’s 3 days with you and also works for others) qualifies for UC unless you are either paying her a pittance or she’s not declaring all her income. I suspect the latter and that’s why she’s trying to blag the self employed route.

How is your nanny self employed?

www.nannypaye.co.uk/can-a-nanny-be-self-employed

OP,

You need to be really careful. It's super rare for HMRC to allow a nanny to be self employed.

@idontknow54789

Thanks everyone. Cash in a card it is then. She's self employed so up to her if she wants to declare it for tax.

It’s not actually. That’s like saying if you pay a builder cash in hand it’s not your problem if they don’t declare it, even though you’ve obviously paid cash in hand to reduce the cost. The payee is also liable when the transaction was structured to avoid tax.