Those of you who employ a nanny and do tax yourself...

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we use PAYE because our nanny earns too much to use the simplified system (the limit is less than £160 a week so you are under it).
If we could've I would've used simplified like a shot as it looked like the tax tables are easier, you dont have to do a P11 (long complicated form that has to be updated every month about pay, NI and tax) and generally you are treated more like an individual who happens to have childcare and less like a small business who has a payroll dept and should know what they're doing.
you get a cdrom either way

I`ve done both and the simplified one is easier, certainly less year end bumf to deal with.

I used PAYE with the help of a very nice chappie over the phone in the tax office. But it was backbreaking paperwork and I would hire Nannytax or similar if I was going to do it again.