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Original poster

Buying a flat for nanny

94 replies

UnicornRidge · 12/12/2022 19:11

Can any wise men/women share their experience?

We are considering buying a 1 bed, or 2 bed flat, close to our family home, for our future nanny, when we move back to the UK.
DH is not keen to live with a stranger, albeit on a different floor.

Both of us work long hours. Live in is a better option. The going rate for a nursery place in central London is £2k per kid. It can easily add up.
If we get a two bed and rent one room out, can we rent it out on a lodger contract? The bills will be in our name.
When we terminate the nanny contract, do we have to evict the nanny through some special procedure?
Regarding tax, is it a benefit in kind that is taxable by HMRC?

Thank you!

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Whataretheodds · 12/12/2022 19:18

You won't be able to use a lodger contract as it's not your home.

CombatBarbie · 12/12/2022 19:41

Can you do it as buy to let?

gogohmm · 12/12/2022 19:51

Free rent is a benefit in kind, yes there's tax implications. If it's separate to your home there's additional things to take into account. A house with an annex would be simpler plus if you overnight/late evening care it's simpler

Original poster
UnicornRidge · 12/12/2022 21:32

Thank you. Does energy bill count as rent? It is more to stop the nanny from taking the pixx with heating. E.g. windows fully open with heating at 30C.

It looks like the Annex route is easier but the house is mid-terraced with a small patio. There is no space to build an Annex.

OP posts:
Original poster
UnicornRidge · 12/12/2022 21:34

Do it as a BTL and rent it back to the nanny? It would not make financial sense as we are both higher rate tax payer. We would have to pay tax on the rent.

OP posts:
dancingqueen123 · 12/12/2022 21:36

UnicornRidge · 12/12/2022 21:32

Thank you. Does energy bill count as rent? It is more to stop the nanny from taking the pixx with heating. E.g. windows fully open with heating at 30C.

It looks like the Annex route is easier but the house is mid-terraced with a small patio. There is no space to build an Annex.

What?! Why would a nanny put the heating on full blast and open the windows? What a very odd reason to buy a flat!

dancingqueen123 · 12/12/2022 21:38

Plus its a future nanny. So you're worrying about something someone you've never met before might be very unlikely to do! 🤯🙈

EmilyGilmoresSass · 12/12/2022 21:39

dancingqueen123 · 12/12/2022 21:36

What?! Why would a nanny put the heating on full blast and open the windows? What a very odd reason to buy a flat!

Show quote history

More money than sense

clpsmum · 12/12/2022 21:39

UnicornRidge · 12/12/2022 21:32

Thank you. Does energy bill count as rent? It is more to stop the nanny from taking the pixx with heating. E.g. windows fully open with heating at 30C.

It looks like the Annex route is easier but the house is mid-terraced with a small patio. There is no space to build an Annex.

Why would anyone do that? You don't even have a nanny at the moment? This is such a weird thread

dancingqueen123 · 12/12/2022 21:40

Bonkers.

NuffSaidSam · 12/12/2022 21:41

UnicornRidge · 12/12/2022 21:32

Thank you. Does energy bill count as rent? It is more to stop the nanny from taking the pixx with heating. E.g. windows fully open with heating at 30C.

It looks like the Annex route is easier but the house is mid-terraced with a small patio. There is no space to build an Annex.

If you think someone would do this, I suggest you don't employ them to look after your children!

Employ a nanny who you think isn't a piss taking idiot!

I think you'll also struggle to find a nanny who wants to live in a flat share with a lodger of your choosing!

Blondlashes · 12/12/2022 21:43

Mumsnet is not your friend here op. I’d suggest asking on London specific nanny forums or speaking to a Uk based tax advisor.

RaRaRaspoutine · 12/12/2022 21:48

something tell me it’s not your DH not wanting another woman in the house.

Respectfullydisagree · 12/12/2022 21:52

Blondlashes · 12/12/2022 21:43

Mumsnet is not your friend here op. I’d suggest asking on London specific nanny forums or speaking to a Uk based tax advisor.

I’m glad someone said it 😂 folk on here can’t afford bloody heating

2tired2bewitty · 12/12/2022 21:54

DH is a vicar so we live in accommodation which comes with the job, and which we would obviously have to leave if he left the job, so such an arrangement is possible. There are however lots of tax implications (we use a specialist clergy tax advisor), so whilst I agree with others that this is a pretty bonkers solution to your issue, I’d get some proper advice from a tax advisor before committing to anything.

cansu · 12/12/2022 21:56

What a load of crap. You have enough money to buy a flat so as to not have the inconvenience of live in. You want a lodger as well. You want to be able to boot them out whenever. You are worried they may have the heating on and the windows open. I would not expect anyone to do this let alone someone I am trusting with my dc so why you think this is likely I don't know. You are worried about the tax implications. Unbelievable. I am sure though that there are thousands of people with similar issues who can advise you on here...

karmakameleon · 12/12/2022 21:57

We’ve had a live out nanny who came to our house, turned the heating up to 25C every morning and then shortly afterwards left to take the kids to playgroup (heating still on). This was a few years ago so not as bad as it would be today but still infuriating. People do all sorts when they aren’t paying for it.

MakeItADouble2 · 12/12/2022 22:00

Would you not consider a live out nanny? Just pay her well and you won't have to worry about her living expenses

tara66 · 12/12/2022 22:16

You may have to consider CGT on sale of property/properties.

Cantgetwarms · 12/12/2022 22:21

Just have a live-out nanny and get a smart thermostat so you can keep an eye on your own heating. Don’t overcomplicate things.

NippyWoowoo · 12/12/2022 23:09

E.g. windows fully open with heating at 30C.

No one does this 🙄

NippyWoowoo · 12/12/2022 23:11

karmakameleon · 12/12/2022 21:57

We’ve had a live out nanny who came to our house, turned the heating up to 25C every morning and then shortly afterwards left to take the kids to playgroup (heating still on). This was a few years ago so not as bad as it would be today but still infuriating. People do all sorts when they aren’t paying for it.

Did she leave all the windows open as well?

fyn · 12/12/2022 23:12

She would need to sign a ‘licence to occupy’ agreement which means she would need to leave if the employment contract ended.