New Nanny with lots of questions, please help!!!!

[alig227]

Hi, I've been working in a nursery for a while now and have decided to become a nanny. I have a family who are interested in employing me but have no idea what to charge them per hour! What is acceptable? I live in Canterbury in Kent.
Any suggestions welcome. Thanks

There is a "Quote of the Week" thing... not a competition, more a nominate thing I think.
For mumsnet news 15/Jan/09 it was:

Quote of the week
PurePurple on her daughter trying to make sense of the world around her: "As a toddler, she fell over in the garden and shouted, 'Call Claims Direct!'"

Think you just send your suggestion to MNHQ for their consideration

Ahhhhh... one of us spends too much time on MN.

I think in an ideal world, if I earned enough, I would probably pay a nanny of mine at roughly the same level as a primary school teacher, because I think the jobs have a lot in common. But unfortunately I am an academic, and I'm only earning at that sort of level myself, so after tax it has to be in proportion with what I earn. I've still got to run a house, feed the kids, get to work, keep myself in pants, pay something into a pension plan, insure myself and so on. In your 40s with kids in tow, your overheads are pretty high, in reality. A lot of the nannies around here are in their 20s so these realities haven't struck home yet.

I think I'm very typical - last time I looked, the high earners whom people on this thread and similar ones have referred to consitute a minute proportion of the population statistically speaking (less than 5%), but seem to get all the attention. It's unrealistic to base nanny salary calculations on the overall take home pay of such a tiny group of people, particularly with a recession looming.

It's got nothing to do with being mean or not valuing people. I am sure my employers would love to pay me more, because I do a great job, but I know there is no way they could afford it. It does not mean I am not valued.

PS My quote is no way funny enough for the home page IMO!!

okay, it was an off the cuff remark. I had no idea there really was such a competition. Anyway, it made me chuckle.

I am big NannyNick fan you know.

You are? Do I need to start a fan club
Nice to know I'm appreciated. I even like it when people don't agree with me, as then I usually get to learn something.

I think you already have a big fan club on MN!

Can I ask why there are problems for nannies registering as self employed? (as mentioned in an earlier message). Just to provide some context, I am a mum of two looking to hire a nanny - a current nursery worker keen to make the transition. However, I couldn't afford to pay her the going rate (approx 1100 per calender month for 4 days per week) plus her tax and ni contributions which would take it up to almost £1500. Any comments would be appreciated. Thanks

The way my friend who is in tax explained it to me is, you can't just choose to be self employed, it depends on the nature of your job and your relationship with your employer. You would be her boss, telling her when, where and how to work, on a permanent basis, so you are employing her.

£1100 would be a very low gross wage for the nanny if she has to pay her tax and ni out of that. Sounds like you can't afford her tbh.

Because Gordon Brown needs all of the tax money he can get so he can give it to the banks.

I agree with Tankie... it's the relationship of the job. A parent is Employing a nanny, where as they are using the services of a (Childminder, Plumber etc).

When agreeing a salary with a nanny, agree a Gross salary. You then deduct the nannies Tax and NI from that amount. You then pay Employers NI on top.

If you can't afford a nanny... having a self-employed childcarer would make no difference. If they were able to be self-employed, their rates would be a lot higher.

£13,200 (£1100 per month) sounds a bit low for a nanny... though could be a similar amount the person is earning at nursery. If they want £13,200 after taking off tax/ni... then it's more like £16,500 Gross - for which Employers NI is around £1400 - so all in for around £18,000.

Oh good point Athene - wonder if RBS will let me get free coffee if I walk in there, now that WE own 70% of them!

Thank you for comments. Should I assume then if she was to contact HMRC to register as self employed nanny they would say no on the grounds described above? I have heard though that lots of nannies are self employed but HMRC don't like it rather than they are not allowed to be? Not being argumentative just really trying to clarify. Thanks.

course we love you Nick - you are a mine of useful info

Amanda, I'm afraid HMRC will basically just say 'no' unless the nanny is moving continuously from temporary job to temporary job, like a maternity nurse.

Nannytax explain it quite well.

Amanda, can you manage a live-in nanny? If so, I think this is your best option for cost effective quality childcare, esp. if both kids are pre school-age.

Yes I could manage a live in nanny but really really don't fancy it!

Ok so is what I am offering unreasonable? Opinions please on below.

A newly qualified childcare worker (aged 19) with no nanny experience thus far but obviously experience in nursery setting - current level 3 qualified.

4 days per week (7.30-5)- £1000 net pay - from my calculations that would be gross salary of 14,800 ish.

To look after 2 children - eldest will be at nursery for a lot of it. No additional duties such as cleaning washing etc, simply childcare. Food will be prepared by myself.

What do you think? Thanks in advance.

Where do you live Amanda?

That breaks back to ~£5.75/hour net, which I think is low but acceptable for a new nanny outside London. After all, she has probably just come off the minimum wage in the nursery, which is 5.60 ish gross. You might want to consider how to handle pay rises over the next couple of years, as she gets more experienced.

The nanny market is very local though and sometimes you find specific nannies aren't very realistic about how expectations scale with experience. I had some quite interesting conversations last year with people who had worked in London or in very specialised and demanding jobs and were convinced that I should be paying the same rate in Cambridge