How much do you pay your nanny?

[zuzkah]

Hi there. Im considering going to work for two days a week and just looking into what options I have regarding a childcare. My ds is 15 months old. I wonder, how much does a nanny cost for a day? Thanks a lot for any help.

Depends on where you are really, and the experience of the nanny. Generally you'd expect to pay her from £7 gross an hour upwards - more like £10 gross an hour in London I should think. Plus your tax as an employer on top of that, plus food and mileage, and activities.

Oh yeah, I forgot to mention it's North London. Im new to this... Do I pay tax? What if she's self-employed? Thanks

She's very unlikely to be self-employed, as most nannies don't meet the criteria. In your situation you would be employing a part time nanny, so would need to pay her tax and NI and employers NI (there are nanny payroll companies who will do the admin for you if you prefer). Lots of nannies and nanny agencies still talk about net pay, but make sure you agree a gross wage with her, especially as she is likely to have another job on the other days - otherwise the tax situation for you gets very complex.

There's some info here about being an employer:
www.nannytax.co.uk/parents/employerguide/responsibilities.html

Thanks a lot willow... That's very helpful. Now I have to re-think. It's not really worth it to go back to work and leave my child just to earn to pay the nanny. I needed to know that. Thanks again.

There are other options apart from a nanny. Childminders, nurseries...not all will cost as much as a nanny.

You would also save some money with a nanny-share arrangement.

A nanny is quite an expensive option, with just one child

a childminder or nursery would definitely be cheaper

cm charge roughly 4/5ph depending on area so costs are about halfed compared to a nanny

as cm's are se and nannies you have to pay tax and ni for as well as employers ni

I would think 2 days per week and only one child isn't worth the price of a nanny the hassle of being an employer, unless you are going to work unusual hours which make a childminder/nursery impractical.

Once you have a second child the nanny becomes a bit more attractive financially.

zuzkah

I am a self employed nanny. I do not expect my family to pay my NI or Tax.

If you find a self employed nanny, like me you would tend to pay about £7.hr.

I charge between £6-10 hr depending on how many children and the role I am meant to play, such as doing cleaning and children's washing etc...

As a Self employed nanny I opt to pay £2.00 tax every week non stop throughout the year. My national insurance is about £16 a month so having to pay this doesnt really put me out of pocket.

Where as if I was employed by the family I would be loosing alot more money every month and so would the family.

I charge just about the same rate of pay that you would expect for a day nursery, but the child/ren are getting one to one care.

In London Day nurseries can be quite expensive...am I right?

not sure if how you are a se nanny?

se menas you set the days, hours and duties you do

sounds to me that you do what the parents want - therefore making you employed

a nanny should do childrens washing as part of her normal nursery duties

so why would you get paid more for doing their washing?

a nanny doesnt normally clean - thats what cleaners do

nannies get paid by the hour or a set daily rate - they do not charge per child so I dont understand why you seem to charge £6-10 an hr depending on what you are doing

you need to have a set rate

and £2 a week tax - so just over £100 a year

I pay about that a week!!!

my dh is se and he pays way over £2 a week

I am Self - employed with the inland revenue. I am set up as a 'small business'.

So I offer my families what they want.
I do charge to do extra cleaning as I know it can be helpful.

I have all the relevant qualifications as nanny and more. I feel parents need to have childcare that meets all thier needs.

I do not charge for petrol I use, nor do I expect a car as I have my own.

if you are se then why dont you charge for petrol and other car expenses and put them through your books?

Because it costs the parents more money. I am happy with £40 - 80 a day depending.

At the end of the week, the money is mine to spend, cash in hand at that.

It may seem stupid and foolish not to charge for petrol etc... but I need work and offering parents what they need makes us both happy.

chellesgirl

Is that really legit?

I know lots of people who claim their nanny is se but I've always been under the impression if you work fixed hours regularly for a family they have to employ you? Wish it weren't so would save me a fortune.

And it may seem strange to parents who have not has me work for them, or other nannies but every parent I have worked for seem to like the way I present my services.

jujuaman, It is legit as I am a 'business'. I am looking to bring aboard other nannies that would like to work this way.

I am also In the middle of setting up a fitness class for mums that provides childcare in the same building. Though I will be employing other staff and this will be a partnership. This will take part in the evenings.

I also run a mechanics company with my partner.

A busy woman.

jujumaman - no it isnt legit

At the end of the week, the money is mine to spend, cash in hand at that

excalty - cash in hand!!! doesnt that tell you something!! i couldnt survive on £40 a day and if you are earning £80 then you would def be paying more tax than £2 a week

And it may seem strange to parents who have not has me work for them, or other nannies but every parent I have worked for seem to like the way I present my services

course they do,they arent paying huge sums for childcare, and what they are doing is illegal!! Have you to mentioned to them that if the tax office catch up with them that they may have a £3k fine and may go to jail?

you are fiddling!!

because of people like you who tell famillies it is ok not to pay tax, this is why many fammiles WONT pay a nannies tax and ni and want to pay cash and why so many job advertise illegaly!!!

No as I said, Im a business and If you look it up on the inland revenue website, wait ill paste the part here for you to see.

I am legal, I pay tax and NI.

From Form SE1.

' There are two types of National Insurance for self-employed people. Class 2 which is a fixed weekly payment'. Class 4 which is a percentage of your taxable profits'.

I Chose Class 2.

I also chose class 2 for my NI as well.

I will be paying class 4 when I earn enough and this will show on my self assessment form most likely next year as I have only been back to work since 6th Feb after being on maternity leave.

You may not be able to survive on £40 a day, but I also own my own mechanics company with my partner.

You just dont get it.

I earn what I want, what my family needs. I dont charge people 100's £££ a week and rip them off. I give them what they want.

For anyone interested in defining employment or self-employment, there's a helpful leaflet from HMRC here - you'll see that most nannies wouldn't fit into that category unless they work on an ad hoc basis or for lots of different families or something.

And you do know that the Inland revenue allows you to be paid cash in hand if the family you work for finds it easier that way.

But it can only be done with childcare.