PT nanny starting with another family and they want to share tax costs...

[nonuniform]

So, my lovely nanny who looks after my kids after school was just working for me for £90 weekly.
I didn't need to pay tax on that, and the NI was covered by the tax office.

She has just started with another family and they have suggested that we all pay through a nanny tax agency and I think this means that we now "share " the tax burden between us.

As far s I can see now i will have to pay out more from my pocket as nanny will still get the £90 from me, but now if here total earnings go over £110 (i think it is) we will be liable for tax and NI and they expectt hat I will share that with them.

Am I being a bit mad or is this a bit bloody rich of them?

Don't think being a domestic employee makes any difference, employment law wise. Differences I think only occur if the employee is Live-In.
I wouldn't have thought a nanny would want to do a zero hour contract either.

As you prior to you nanny getting another job were not in a position where you had to pay anything to HMRC, I'm not that surprised that they are not speedy with the paperwork. However the situation has now changed, so I think you need to operate Simplified PAYE. Get in touch with the New Employers helpline and explain that your employee has another job in addition to your own and see what they want you to do.

If your nanny decides to use all their personal allowance in the other job (this is quite possible if the other job is 30+ hours per week) then your job would I expect be done at Basic Rate (zero personal allowance). Under Simplified PAYE, Employees TAX is then salary * 0.22. Employee's NI and Employer's NI are dependent on the Gross salary.

How many hours are they working for you, for their £90?

Gosh I really should proof read!

Start of second paragraph should read:
"As prior to your nanny getting another job you were not in a position where you had to pay anything to HMRC,"

Maybe I need more coffee!

Have spoken to the tax office and it's all sorted.
I pay ehr for 9 hours a week.

The tax office will split the allowance across all of the employers as per what we pay her

Thanks for the advice

it'll cost me about a tenner more a week, but hopefully her ofsted reg will come into effect soon, so we can pay her in childcare vouchers soon. That'll be helpful

Good to hear you have got it sorted. Hope they are letting you do Simplified PAYE.