working out nanny tax

[mrsshackleton]

Hello, after a longish maternity leave with mother doing bits of childcare I want to employ a part-time nanny again. The woman I want to employ babysits for us occasionaly and wants to know in advance what her net salary will be (fair enough). We've already agreed on a gross. How can I work this out without giving myself an aneursym. I plan to do the tax myself rather than employ a pay roll company as I did it for my last nanny and it was relatively straightforward but I cannot for the life of me remember how/if we had the gross/net conversation in advance there. Any advice so gratefully welcome. Thank you!

If you get the employer's pack from the Inland Revenue I think they have a whole set of tables for you to work it all out there.

The key thing from your point of view is to agree a gross salary and pay her on that basis.

ListenToTaxman.com will calculate Gross to Net. It is handy for being able to tell someone roughly how much they would get - but don't use it for payroll purposes, as you may find that when doing monthly payroll the figures are different by +/- one pound.

P49 is useful to read, as this talks you through taking on a new employee.

I am suprised that the nanny didnt know roughly how much she was getting - as in no point agreeing to a gross wage, then reliesing what she actually gets in nett is much less than she thought iykwim

She does know roughly (as do I)what she'll be taking home, but she's very precise about such things, so good to give her complete peace of mind and start off on best possible foot
Thanks so much for all your help. Off to check out nannynick's site. Cheers!

I think that you can do it on the nannytax website - hven't checked but I remember there is a calculator whish works out net to gross but I think it would just take a few guesses to put the right net amount in to give the gross that you've agreed, if you know what I mean.

Also agree with Jura that nannies have no concept of tax and how it works. I saw our old nanny today who has struggled to find a job since she left us in February - I offered to do a tax return for her because she will have overpaid tax this year having not worked for the full year, but she just didn't get what I was talking about at all. Don't thing she even realises that she is paying tax because she just sees it as something her employer pays.

I agree that nannies and tax go together like Jordan and the complete works of Proust, it's been a struggle to explain to this nanny that she can't do her own tax, I have to employ her
By the way, that is true isn't it - a friend has just employed a nanny who swears she is self employed and will do her own returns, I keep telling my friend that I'm sure this is dodgy but she doesn't want to know!

here you are, have a jiggle with numbers

www.nannytax.co.uk/calculator/calculator_nannies.html

agree many nannies do not reliese how tax works, esp if you agree a gross wage

mrs s - the ONLY way a nanny can be se is a temp/mn - a normal nanny employed by a family CANT be self employed