Would you believe a nanny who said that she paid her own tax and NI?

[Notsochilledanymore]

Just that really - nanny asking to be paid gross and is saying she will pay her own tax and NI. Sounds a bit suspicious to me, but am I just being paranoid? Is there a way of checking?

If you don't trust her to do what she says you shouldn't trust her with your kids tbh.

I don't know her yet - she's someone I'm interviewing for the job. I just haven't come across this before so wondered if it was plausible.

if she is self employed, and invoices you as such, then it is ok and up to her what she does with her tax. but if she is employed by you, it is your responsibility.

I had a therapist for my son who was doing this as she worked for several people.
I did ask her for evidence from her tax office though

How would you differentiate between the two so that I don't get done by the Inland Revenue?

Ask for proof as you could be done.

And if she claims to you to be self-employed but is deemed by the IR to be employed, then you will be liable for the tax and NI, not her.

If she s working full time for you then can't see how she could claim to be self-emp tbh.

That's what I thought - I think she's just trying to get a larger salary by claiming I'm paying gross and then just taking it as cash in hand. Not worth taking the risk with her, I think

Dont think she can do this even if she wanted to - just like if we go out to work somewhere we cant say this to our employer - employer must deduct PAYE etc by law. Only exception might be a nanny who does some sort of temporary/casual work - like an emergency nanny who goes in to various homes for a week or two - but then I would expect you would pay the agency and the agency would deduct PAYE. So no - dont pay her gross. The Inland Revenue will still fine you etc - if in doubt call the Inland Revenue yourself before you end up in trouble over it.

nannies gen arent se unless as a temp/mn position

if you decide her days/hours/duties etc, then you are telling her what to do and when, and you are her employer

if you are going to be her perm job, then she MUST be employed by you, and you will be responsible for her tax and ni

if you do for any reason employ a se nanny, then when you come to paying her, get a duplicte book, and both can sign the amount with maybe something written,as xxxx is paid £x for the work she carried out - xxx is a se nanny and the amount i paid her is gross and she is liable for her own tax and Ni

not sure it would hold up in tax office etc - but it might cover your back and stop the IR from coming down on you with a hefty fine about £3000 and possibly a jail sentence

Regardless of what she says, it's your responsibility to pay it as her employer, and the Revenue will be after you if she doesn't keep her word. I wouldn't do it myself.

Actually, she can be self employed and can work for full time. Whats her nationality?

I would be suspicious. If she is going to work full time for you, taking care of your kids in your home, you must employ her and pay her tax and NI. Which kind of contract would you draw up with her if she did that?

I have a friend who is se and works as a nanny for full time for only one family. So no problem at all. As long as she can provide necessery papers for OP`s record. So there is nothing to be suspicious about.

Jura, cause i know a country which has a speciall agreement with England. So as long as they can prove that they are paying there tax,ni etc. they can stay in England as long as they want.

Is the nanny volunteering to pay the Employers NI as well?

Jura's right - she'll be your employee so your headache if she screws up.

I think you didnt understand what i meant jura. What I meant was as long as they pay there tax etc. then they can stay. So to be able to pay there tax they need to be employed! so its possible.

I can only advice the OP to call the HMRC to find out if she has doubt as the HMRC know this already.

ditto Jura.

LadyMuck, I dont know exactly how they are doing it in term of tax, E`s ni etc. all i know is she does and many others. I think its best to call HMRC to find out details if u want to know more.

Bluegreen - sorry but I think that you are confusing the issue here: this is not about whether the nanny has the right to live in the uk, but as to how she is taxed on her income. If you are self-employed then you are responsible for paying tax and national insurance. But if you are an employee then your employer is responsible for deducting tax and national insurance from your salary. Most individuals would prefer to have self-employed status for tax purposes as in general the rules are more generous (and it is also cheaper for an employer). However there is a fair amount of law on the issue and fulltime nannies working constantly for one family would be deemed to be an employee (and therefore it is the responsibility of the employer and not the employee to make the necessary deductions of tax and NI and pay these to HMRC).

So far the OP hasn't given any indication that the person in question isn't a UK national, so not sure why you think an agreement with another country comes into it?