Nannytax - how much do they charge?

[wassername]

Does anyone use Nannytax or similar companies to do a nanny's pay? I'm employing someone for 2 days a week, £75 a day (to go up to £80 a day after 3 months)so just a little over £600 a month on average for now. I'm not sure if it's worth my while using Nannytax as I barely earn enough to cover the nanny's salary as it is. Does anyone know how they calculate their charges and does anyone have thoughts on the pros and cons of using an agency or doing it yourself?

Thanks!

NannyTax says they charge £260. There are other payroll companies who charge less, NannyPAYE tends to get mentioned quite a bit as being quite good - they charge £170.

Only complication I see with your situation, is with regard to what other work the person may be doing on the other days. However, that shouldn't really be a problem, as you will agree a GROSS wage with your employee. If your employee has another job which is using all their personal tax allowance, then they will complete a P46 (see your new employers pack, if not in the pack call new employers helpline and they will send you a P46) and you then do the payroll based on how that is completed. P49 tells you how to work through a payroll run.
Try to pay your nanny monthly, then you only have 12 payroll runs a year. The Employers CD-ROM helps a lot, so using that plus calling the helpline if you get stuck (or asking on here) will often be sufficient.
Probably best to start off doing it yourself. If you find it hard, then think about getting someone else to do it.

You should have a bash at doing it yourself. Call the tax helpline on 0845 60 70 143 (if you are uncertain about using this route then tell them you are thinking of hiring a nanny but have not decided yet, that way they won't start you up there and then). Once you get going it only takes a minimal amount of time and is pretty easy (I would say a couple of hours to get started, then maximum 15 minutes a month, 4 online payments by credit card each year, and an annual return to fill in, which takes maybe an hour to complete and double check).

Ive never heard of Nannytax but I have just employed a nanny and I am doing it myself. If she is going to be earning less than approx £1260 per month gross then you can employ her on a Simplified Domestic Scheme. This means you pay her straight out of your bank account into hers and manually complete a payslip which you can buy at any stationers. The IR will send you a booklet telling you how much to take off for tax and NI.

You then pay her tax and NI plus your employer tax in a quarterly payment, so I am just putting that money into a seperate acocunt so I dont spend it.

I am surprised at how easy it has been to set up and the helpline mentioned by squiffy have been so helpful.

Are you sure it's £1260 limit for Simplified PAYE, I thought it was a lot less. HMRC: Simplified Deduction says taxable pay must not exceed £160 per week / £700 per month.
It is designed for employers of nannies, gardeners etc.
Wassername - if the amount you will be paying is likely to exceed £700, then use full PAYE. If under £700, then call the New Employers Helpline and they discuss with you the use of Simplified PAYE.