is this potential AP asking for too much money?

[iheartdusty]

I'm looking for my second AP, to start in March. Hours are up to 30 p/w, before and after school, so s/he will be AP plus. Some times, maybe three times a week, she will be in sole charge of the DCs from 7am to 7pm. DCs are aged 5 and 7. Other days, I or DH will be there and she can go off early.

So I obviously need to pay higher rates than a standard AP. I was planning to offer £80 and go up to £90, plus the usual private room etc.

I have a very promising candidate with 2 x 6 month experience in the UK as au pair, in families where the children are similar ages, lots of cooking experience, an excellent fit. But she wants £110 per week.

What do you think?

Won't she be liable to tax on this figure? Or does inland revenue not treat it as taxable income?

She will be liable for tax AND NI and will consequently end up earning less than she would if she earned just below the threshold.

Which country are they from (nationality)?
At £110 per week, it is in my view over the NICs threshold so you would need to operate PAYE (possibly Simplified PAYE). Now that the Au-Pair scheme no longer exists, most au-pairs will be Mother's Helps really... it is a job.

Thanks frannikin. The 'threshold figure' seems a bit confusing.
The IR website says Individual personal allowance is £6035 (which is £116 per week). National Insurance is payable over £105 per week. But what about non-Brits who are not resident so don't have a NI number?

oh x-post, nannynick. That table gives even more confusing figures.

She is from Hungary, so no problem with working here.

I don't mind in principle being an employer again - I think there have always been a lot of problems arising from the expectations people have of an au pair scheme - but it does start to become a bit more expensive.

I pay my aupair £100 per week.

NI numbers are really easy to get and in the meantime you can use a temporary one which is:

TN followed by your dob expressed as 6 digit then M for male or F for female

So a girl born today witll have a temporary NI number of TN060109F

A permanent NI number can be given once they have a signed contract.

I think that's probably the least of your worries.

If you ever paid her overtime she would be liable for tax on that, and any overtime you paid her you would need to put through PAYE as she's over the NICs threshold.

Thanks for those. nannynick, that was an outstandingly useful comment about simplified PAYE. If anyone else is looking into this, the link is here and the relevant part is this:

"If this is your employee's only job and you pay them less than the NIC lower earnings limit (LEL) - £90 a week or £390 a month (2008-09) - you won't have to operate PAYE at all.

If it's their only job and you pay them at or over the LEL but below the NICs earnings threshold (ET) - £105 a week or £453 a month (2008-09) - you won't have to operate PAYE on their earnings but you'll have to keep a record of their personal details, their National Insurance (NI) number and the amount you pay them.

If they have more than one job, you'll need to operate PAYE. You can use the Simplified PAYE Deduction Scheme if their earnings are below the thresholds described earlier."

Of course from April 2009 the new limits apply and the LEL will go up to £95 per week and the ET will be £110 per week.

sorry frgot the link

simplified PAYE for domestic employees