Another 'self-employed' nanny question

[Fleecy]

DH and I have just been interviewed several nannies over the last few days and have got it down to a shortlist. However, one of the nannies on the shortlist has another job already and it's a bit of an odd one...

She works for another family where the mum is studying and the college pay for the childcare. So this nanny invoices the college and they pay her gross. She's spoken to HMRC and registered as self-employed, pays tax and NICs.

She's ofsted registered and great with the kids so I'd like to consider her - but I've seen a lot on here about how nannies can't be self-employed. She says she'd be happy to be employed by us but I don't want to get involved if there's anything dodgy going on!

And does this mean we'd get to use all of her nil rate tax band as she'd declare her self-employed earnings after the end of the tax year so we'd have used up the nil rate by then? Or would we split her allowance across her employed and self-employed earnings?

Boring I know, but thanks for getting this far!

Someone can be employed and self employed. So no issue you having the nanny as your employee and them remaining self employed in their other jobs.
Employment status as I understand it is determined on a job by job basis.
Agree a Gross salary. Ask for a P45, or give P46, then do PAYE. If nanny wants it different, up to them to talk to tax office.

Don't worry about taxcodes. You just agree a Gross wage, tax office will notify you as to your employees taxcode, which tells you the deductions to make. Think the P49 booklet explains about taking on a new employee.

As an employed and self employed nanny, nannynick has hit the nail on the head. Your potential nanny can keep her original job and still be employed by you.

Thank you - that's a relief. We plan to do the PAYE stuff ourselves as I've heard HMRC are pretty good at talking you through it so guess we can go for it!

Agree with previous comments re gross wage - don't get sucked into the net pay agreements many nannies and agencies try to agree. You will almost certainly end up deducting tax at Basic Rate, 20% of everything, so that should be quite simple. Make sure you agree monthly pay so you only have 12 calculations to do in a year and not 52, because pay calculations and HMRC returns are always time-consuming, even easy ones!