Nanny bringing own child - benefit?

[WindyAnna]

An accountant friend has just told me that if a nanny brings her own child to work it is considered to be a benefit in kind and I should declare it as such to HMRC. IS this correct???

Thanks for all advice/experience of this.

A

That one really is for the accountants - my query is: Why would you want to declare it to HMRC?
I'd be surprised if it isn't in an exemption somewhere.
Some possible exemptions are:
Services provided on the employer's premises
Qualifying Childcare

Personally, I would ignore the accountant and just treat it as a nannyshare. If you are seriously concerned that you may be not correctly paying tax/ni/employers ni, then contact the HMRC Employers Helpline (or New Employers Helpline if applicable) for advice.

I have never heard of this. I've been bringing my child to work for the last 2 and a half yrs.

The reason I would tell them is that I would need to include on P11d along with car etc. I don't really want to speak to HMRC as I don't want to draw attention to it!! In my experience it could open a whole can of worms for lots of other people that I would prefer not to subject you all to!

My chum the accountant was clear that it is a benefit in kind since otherwise she would need to find childcare provision to allow her to work. This accountant does taxation and payroll consultancy for a number of big organisations. Her view is that most employers are small employers and don't even realise it's a benefit and won't be used to submitting statements of benefits unless they give their nanny a car for personal use, for example (you do all declare that one as a benefit if you give it don't you?)

It isn't a workplace nursery - tried to swing that one meself since my registered place of business is my home address and though would be a good way of doing it - no chance since it is also a permanent dwelling. As to the £55 a week threshold - accountant thinks it is equivalent to £150 a week (£30 a day).

I reckon I am going to act dumb on this until someone proves it's valid. As far as I am concerned the nanny is bringing her child to work rather than having care provided, I think there is a subtle difference! My mate who is a farmer has her kids round her all day and she doesn't declare that as a benefit in her accounts! I think a nanny can do a job while looking after her own kids, so can a farmer, so can other jobs, the fact that some are self-employed and some are employed is irrelevant.

Cheers

Windy