Total cost nanny in London

[HappyNL]

Hi everyone, I am currently looking into the cost of a nanny. All nannies seems to advertise Net and it seems to be very difficult to figure out how much I would have to spend in total.

Can you please advise?

Can't advise on London costs (we're employing a nanny in the southeast) but I'd strongly advise you not to agree to a net contract under any circumstances. You'd risk paying much more than expected if her tax status changes. Nannytax has a good article on this I think. They also have pay data and a total cost calculator on their site, both really useful.

I'm a nanny in London. You're looking at around £16-18ph gross for an experienced, qualified nanny.

Thank you so much both for your reply! @FunkyBuddha85 - do you know how much the total costs is approximately (monthly or yearly for 8 hrs, 5 days a week)? I’ve been informed that food for the nanny is also included?

@DoubleHelix79 - I’ll have a look on the website. Thanks!

You're looking at around £37-38k per year. If you wanted a junior nanny or mothers help where they assist you whilst you're there you could offer less.
Food is usually included yes but just the basics for breakfast and lunch that you would normally buy with your weekly shop anyway.
Although, I had a mum once begrudge me a bowl of porridge which I couldn't believe! Some families are tight. I wouldn't suggest you be that parent. You won't get a good nanny who will want to stay for long!

I know 2 nannies in London, both 20+ years experience, both on approx £45-50 gross. They also have cars from their employer. There's insurance etc to factor in. They both bring their own food, and work approx 7.30am-6pm.

And you have to factor in workplace pension contributions and public liability insurance.

As you only want 8hrs you may end up paying a slightly higher gross hourly rate

Many nannies work 10-12hrs. 8 would be a big pay cut for many over the week

Ballpark £16/20hph plus employers ni /pension

It depends what sort of nanny you want, but £16ph gross is the bare minimum, between £18-22 gross per hour is what you're looking at for more experienced nannies (particularly because you want slightly shorter hours). This is probably dependent on where in London too, I'm in West London.

Other things to factor in: employers NI, pension contributions, the cost of a nanny payroll provider. You're probably best off speaking to nannytax or similar to get an idea of total costs.

In addition, the nanny would normally eat at work, so yes, lunch is included (plus tea/coffee/snacks). You'll also obviously cover any costs incurred while looking after your children (travel, baby groups, activities etc). If you're normally out of the house, you'll also have the cost of gas/electric and wear and tear from having your DC at home all day.

Ok you're probably looking at a total cost to you of £40k per year, minimum. This is including employers NI, pension contributions etc.
you'll also need public liability insurance although that's not too expensive. Plus you'll have to pay your nanny tax agency unless you decide to do the taxes yourself.

There are some old threads about costs, which may help. Activity costs are likely higher now, as is gross salary, but it gives you some costs to think about.

www.mumsnet.com/Talk/childcare/3811929-nanny-cost-example-36-hour-week

Lets say you can agree a salary of £18 gross.
8 hours x 5 days per week = 40 hours per week. 40 x 52 = 2080 hours per year.
£37,440 gross per year salary.

Employer pension contribution (3%)= £1123.20 (may be lower than this depending how payroll is done)

Payroll admin & contract=£250

Activity budget: If it was £5 per day then £1200 per year (48 weeks).

If nanny uses their car to transport your children you pay mileage. £0.45 per mile. An average mileage of 60 per week maybe about right, small journeys add up. It can help to track your own mileage in your car for a while to get a reasonable view of what average mileage might be. 60 miles per week, £0.45 per mile, 48 weeks = £1296
If nanny does not use a car, will there be public transport costs, taxis/Uber etc?

Employers National Insurance: £3911

Then food whilst nanny is on duty (so probably lunch and afternoon tea depending what time your children eat in the afternoon/evening).

So rough cost to you as the employer is £44,097 so perhaps budget around £45k.

60m a week. That's 12 a day @nannynick - that's nothing

A Full time nanny job will be more than that with play dates /activities /park /swim / farm trips etx

@Blondeshavemorefun I used to do a lot, but do hardly any now. It will certainly vary due to location - you still Kent way? In London all they may do is go back and forth to a local school. Other things they may do by walking, bus, train.
I found school holidays with school aged children was when the mileage racked up, as then it was trips to National Trust houses, museums, country parks etc.
@HappyNL may have a baby, not school aged children, so travel by nanny with a baby may be low, especially if there are a lot of local places to go within walking distance.

Ah yes good point guess london transport is easier - car is used in Kent

As well as the additional costs outlined above, you may want to factor in the additional cost of eg heating your home during the day. We’ve had nannies for 14+ years and I’ve never restricted when the heating is on, as I’ve always taken the view that this is someone’s workplace and I want her and my children to be warm and comfortable. But I’ve heard awful stories about employers being very restrictive on when the heating is on and it being on too low for comfort.

Thanks all! Your replies are much appreciated. Is my understanding correct that the gross amount will be deducted from my net pay and no tax relief is provided?

She’s 5 months so calculation could be correct :)

You paying a nanny has nothing to do with your employer.
You would have your take home pay (net). Out of that you would pay all your bills including the cost of whatever form of childcare you use.

You may be eligible for help with childcare cost. Tax-Free Childcare scheme is something that can be used to pay a nanny, as long as the nanny is registered. In England that means the nanny has to be registered with Ofsted... when advertising the job I would insist on having someone already registered, so you do not have a delay in being able to use the scheme to make payment.
https://www.gov.uk/tax-free-childcare How much of a benefit to you that scheme is depends on the number of children involved and the cost of childcare.

There are other childcare schemes, some Government has promised will start in a few years time... but we shall see what really happens. Have a look at https://www.childcarechoices.gov.uk/ for what may be available to you.

Hi @nannynick , thanks for your reply. I am unfortunately not eligible :/

Ill just have to be very careful with my spending in de next year. My LO will be 6 months when I start to work. I’ll work three days from home, two days from the office and feel this might be the best set up for us because she’s so young.

When we looked into it, I realised that it costs quite a lot when you factor in:

Nanny salary (obviously!)
Food for the nanny and your child
Cost of activities
Wear and tear on your house
(Sometimes) transport for the nanny - car or public transport expenses

Nursery is expensive but at least the headline price covers food, transport, activities etc

I agree that for a 6 month old, nanny is a good choice but for an older child unless you really need the longer hours cover, nursery is a lot cheaper IMO

Consider mixing nanny and nursery. I work for parents who have found a combination works well.

Working from home may not be practical. Give it a trial now. Try being in a room of the house away from your daughter, whilst someone else cares for them. Some parents find they can isolate themselves away and not be bothered by the sound of children in the house, others find it harder.

Yes, I agree. Only considering it because she is so young.

This is a fantastic suggestion / idea. On days I am at home she could go to nursery..

Two days nursery can’t be that bad. She’ll be exposed to other kids and it will reduce costs.

I have not considered it because I am scared leaving her in an environment where she might not get the attention that she needs as a 6 month old. And if something happens that bothers her she won’t be able to communicate.

With a nanny at home I can still keep an eye on what’s happening.

My plan was to get her to nursery once she’s 1.5 years old.

what are your experiences with nurseries?

A nanny is a much better form of childcare imo, but that does come at a cost. Nothing wrong with nursery.

It's a bit like the difference between an economy and first class flight. Everyone gets there, it's just about the level of comfort you want to travel in.