Can I be self-employed as a nanny?

[tankie]

I had a job interview today for a nanny share. When I asked if the pay was net or gross they said they would pay me as self employed and I would pay my own tax/NI, and also that they'd pay me for their holiday but not mine.

I was under the impression that a nanny couldn't be self-employed, but they say their current nanny is? I've had a look at the Inland Revenue website but it's not very clear.

Conversely, I have found a nanny to pick my son up from school and look after for 3 hours 2 days a week who wants me to pay her as self employed. i.e I will just give her the hourly rate plus mileage one way for school pick up. She says she sorts it out through her husbands accountant as he is a self employed electrician. She nannies for 2 other famillies on other days. As my requirement is quite small and only 2 days a week this seems ok to me. Is she pulling a fast one getting cash in hand? Do I care if everything else seems fine?

some nannies are self empolyed .... i am one of them.

Self employed doesn't mean cash in hand....i tell my clients that they are more than welcome to pay me by cheque or bank transfer.

I do only take on part time, temp or ad hoc work thouhg and I set the days and hours that i work.

XFabba....if you are telling her the hours and days that you need her to work, she is your employee and you should be paying her tax and NI (unless it is a temp position)

hmm I'm a bit confused now. I suppose you would say it is part time as she asked me what hours I needed (3 hours a day twice a week) which she was happy to do as she wanted some extra hours and asked me to pay her as self employed i.e doesn't want me to get involved with tax and NI. It will be ad hoc for extra hours in the holidays and temp in the sense that the arangement may well come to an end after a year or so if we change to a school closer to home, she moves out of the area or either of us are on mat leave (all possibilities) - all discussed and agreed.

Does it sound ok under these circumstances? Seems to work for us and her.

if it is a perm job xfabbia then you should pay her tax and ni, you have decided on the hours, as that is what you need (after school care) so tech you are her employer

"Is she pulling a fast one getting cash in hand? Do I care if everything else seems fine?"

and yes you will care, if the tax office find out and FINE YOU £3000!!

She sounds to me like an unregistered childminder. I wouldn't touch this with a 10 ft barge bole for 6 hours of childcare each week. And, for what it's worth, £8 is too much for childminding one child.

If she is a nanny, then you are her boss and she does with your kids as you dictate. For example, if you say I want you to make ham and cheese sandwicjes for lunch and write down here in this nanny diary how much he eats, then it is her job to do so. If you say, I want you to take DS to this footie tots class, it begins at 3:00 on WEdnesdays, then it is her job to do so. If she is a childminder, then she will tell you what activities have been chosen.

What if she is paying tax as she says she is herself?

What about the other 2 famillies - should we all pay a proportion of her tax and NI?

If she is self employed tell her that you want a conract stating that fact and then pay her by bank transfer or cheque.

She can then tell you that she may be unavailable to work on certain days as you are not then employing her.

My clients ask me if i am available and i say yes or no. For instance, one of my families asked me to work Sunday through to Thursday. I can't do that as someone else has booked me for Thursday so I am doing Sunday - Wednesday this week for them. Next week however, I can do Sun - Thursday but again the following week i can't.

I do try to accommodate my clients as best as I can but I always make it clear that it is on a first come, first served basis so whoever books me first, gets the days and times that they want!

I spoke to my agency (this job isn't coming through the agency though) about self employed nannies, and she told me that although it is unusual sometimes the tax office do allow it. One nanny on their books is self employed, even though she only works for one family.

I don't see how it benefits a nanny though - she doesn't get sick pay or holiday. Apparently she likes it cos she can claim back travel expenses and the like.

MGMidget - the parents are self employed so I don't think they would qualify for childcare vouchers would they?

No, unfortunately not, so no benefit to them in you getting OFSTED registered unfortunately. If they are self employed they must know the tax office rules re: self employment so maybe you could ask them how their nanny managed to become self-employed, what sort of contract they had with her etc to enable this. If she's genuinely self employed then the contract would reflect this - e.g. clauses about being self employed, chosing how she does the job etc. If she is really self employed then maybe you could take on the same arrangement with the same contract if you and the tax office are happy? You could try checking it out with HMRC (tax office) before you take the job if they will offer advice but you may find the parents start getting twitchy and no job offer is made once HMRC is mentioned!