wage slip if not paying tax?

[feelingfedup]

nanny does just over a day for us and earns 100 a week. no other income - she is a student. inland revinue say she does not need to pay tax or ni as her earnings are below threshold, nor do I need to make employer contributions, for the same reasons.

can someone tell me what information I need to put on her wage sliip?

Ummm... does she need a wage slip? What if she is working for someone else as well?

I don't really know the answers as I have only ever employed a full-time 5 day a week nanny, but I bet someone will be alnog soon...

I think you still need to register as an employer, even if you make no contributions. She'll need proof of her earnings if she wants to claim benefits at any point.

I'm not sure what you should put on the wage slip, but a nanny payroll company should know.

Sorry, not much help!

nannynick is the expert on this, I think.

Not sure who you spoke with at HMRC, but they should have told you about the Simplified PAYE scheme. The Lower Earnings Limit for NICs for 2007/08 tax year is £87.

Not sure if the being a student has changed things, perhaps, but better to complete the paperwork than risk HMRC changing their mind in the future.

According to P16, tax deduction for £100 weekly pay is £17.03 under the simplified scheme.

Under the Simplified Scheme, NICS are only paid when earnings exceed £100 weekly, however NICs liability starts at the Lower Earnings Limit, £87. Therefore you should complete a P12, so that your employee does not lose out in the future due to incorrect NICs. Also P12 should be completed as there is £17.03 a week in tax payment due.

You should always give a payslip, even if it is just stating the amount paid, plus any deductions from GROSS salary - even if they are Zero.

I would suggest calling the HMRC New Employers helpline again and asking about the Simplified PAYE Scheme, explaining that you will be paying £100 per week, which is above the Lower Earning Limit, but is currently the Earnings Threshold.

I employ a student to nanny for me in school holidays - she earns under the threshold for tax over the course of a year but I still give her pay slips - and we fill in a declaration thing (technical term) to say how much she has earnt for us.

Oops, posted too soon - wanted to say that I use a nanny payroll service to do the payslip but it basically states the gross salary, the tax code and the amount of NI paid (she earns over the weekly NI limit so that is paid but no income tax)

thanks for all the info, esp nannynick. I will ring IR again and check