Car Insurance - I don't think we will ever know for sure what the situation actually is. Insurance is such that in the event of a major claim... you can be assured that the insurance underwriters will look at what they can do to reduce the amount they have to pay out. Therefore the more we try to get appropriate cover, the less chance there is for the underwriters to claim that we didn't give them the full picture. It needs cases to go to court - so that everyone knows what is and isn't covered.
For now, the best you can do is to make it very clear to insurance providers (often brokers) exactly what you are expecting cover for. Get in writing from them what it is they are covering.
Childcare insurance specialists have agreed specific policies with some underwriters. Layton Blackham and Morton Michel are the two major players.
Gross v Net wages
For employers, agreeing a gross wage makes total sense, as they have to do PAYE based on the Gross wage, not NET. It is horribly difficult to calculate Gross wage from a Net starting point.
With a NET wage, the employer needs to work out what Tax, Ni and Employers NI need to be added to it. Calculating that is hard, not even sure I fully know how to do that.
If employers can work out how much a nanny will cost them, in advance, it helps prevent situations where parents think they can afford a nanny... hire a nanny, then after a few months realise that the costs are a lot higher than they initially thought.
Tax rates change - they go up and down. Typically the personal allowance increases. Using ListenToTaxman you can compare against previous years, to see what changes have been.
For example, with a Gross Salary of £20,000
In 2008, you get 98.50 more take home pay, than you would have got in 2007.
In 2007, you got 68.56 more take home pay, than in 2006.
Don't assume it always goes up though, as in 2003 you got 148.92 less than in 2002.
Tax rates change, sometimes for the better, sometimes for the worse. Generally I would say that take home pay goes up, with tax changes, even if you don't get a pay rise.
With a net wage, you would not see any difference between tax years.
Thinking of buying a house? To get a mortgage you need to prove your income. Your payslips and P60 will be useful to refer to when completing a mortgage application. If your employer is starting from a Gross salary, the chances are that they will be producing a payslip, which shows the deductions made. If they start from a Net salary... are they showing the amounts of tax/ni being paid? Is the payslip easy for the mortgage company to read, to establish what your income is, before tax.
You could argue that it isn't to your advantage as a nanny. But, if you are not paid like other employees in other jobs, does it make you part of the underclass... does it mean that you are not doing a real job?
As I am for having Gross wages...
Can you tell me why you would want a Net wage?