Nannies working part time - how does the tax part work?

[IdrisTheDragon]

I am considering having a nanny for either two or three days a week. I realise they might well have another job as well.

How does the payment of tax work? I am an accountant (so should be able to understand this ) but am confused about how the personal allowance would be allocated.

I also realise that nannies like to have their salary quoted net, but obviously we would be paying gross (plus the employers NI on top) and it is that amount that matters to us .

Any thoughts would be welcomed.

Small, polite bump .

I think the way forward is to talk to other family and see if they will split the allowance 50/50 (or whatever proportion reflacts who employs her how much of the time). Or maybe the nanny could approach them for you.

Personally, I would only talk in gross if I were employing a nanny part time.

Thank you - I wondered if you (as one of the nanny employers supreme [smile}) would appear here .

Have already had some people asking what net rate I would be offering and so was wondering how to approach it. I don't know yet there would be another family of course....but being an accountant am having an urge to make spreadsheets showing amounts it would/will cost...

even

I would just reply to them in gross and then go on to say if you have no other employment this would equate to x net. But I certainly wouldn't pay anyone more money because someone else had their tax allowance.

Echoing Eleusis - I would tell them the gross salary and make sure the gross amount was stated in the contract. I do work out how much it estimates to as net if I were sole employer and say 'this would be equivalent to £X net if no other employment'..but I wouldn't enter into negotiations with other employers re: splitting the tax code unless I was officially nanny-sharing.
When I did nanny-share there was a NI saving which we got from splitting the tax code but nannypaye worked out the details so I can't expand on that!

If the nanny has another job, it would be up to the nanny and HMRC to come to some kind of agreement regarding splitting tax code. In the past when I did a 3-day a week nanny job, I put that down as the primary employer. Then subsequent work I did, for nursery agency for example, went down as secondary employer (for which BR code used). Ultimately I think it will come down to if your nanny gives you a P45, or if they complete a P46 - as initially you would do payroll based on the outcome of either the P45 or P46.

As a nanny, I don't like having my salary quoted net. I'm a professional nanny... I deal in Gross

With regard to how to tackle a nanny who wants to know a net rate... I think you have to tell them that salary is agreed Gross, but that they could use websites such as ListenToTaxman to get a better idea of their take home pay, based on their personal circumstances.