Tax codes for nannies/ mothers helps?

[maqrollelgaviero]

Hello,

We seem to be progressing well with our Australian Mothers Help / Au Pair thanks to advice on here, her visa interview is next month and fingers crossed should go smoothly.

I'm planning on using payefornannies as also recommended but am struggling to find info on what her tax code is likely to be. Can anyone tell me where I might be able to find tax codes for non uk workers as I'd like to do the contract in gross wages rather than net?

Thanks in advance,

Tax codes are based usually on previous taxes paid in the UK by the person, and annual tax allowances. I think 603L is the standard code at the moment, but am not sure (I haven't processed my nanny's salary yet as I only do it quarterly). It is given to you by the Inland Revenue. When she gets here you need to take her to the local jobcentre and ask for an NI number for her. Then you should be able to obtain her code from the HMRC. If you phone the employer helpline on the HRMC website, they will be able to tell you for sure what code to use in your calcs. They are also very helpful.

what visa is she coming in under - the youth one?

Yes it's the youth mobility visa. Thanks for the info though , I'll have to get on to the jobcentre about the NI number too

Emergency Tax Code for 09/10 is 647L. I would expect that PAYEforNannies could use that (or BR) until the actual NI number comes through. PAYEforNannies should be able to sort this out for you... have you asked them? I expect they come across this issue on at least an occasional basis.

I don't see why you need to know the tax code to do a contract in Gross? Or have you already told them that they will get a certain amount of pay (take home) and are thus now needing to try to do Net to Gross calculation?

that's exactly it nannynick, we settled on £150per week net but on reading the payefornannies website it recommends doing the contract in gross so I was hoping to be able to calculate backwards iyswim.

She's not arriving until mid August so I haven't gone into specifics or contracted PFN as yet.

Calculating backwards (ie Net to Gross) is very hard given the way that PAYE works. PAYEforNannies with luck will use a payroll package that may provide that facility, so worth sending them an e-mail to see if they could give an approximate figure to use. However it is important that the nanny realises that the amount paid each week/month will vary, as that is the nature of UK taxation. The variance may only be a few pennies or a few pounds... but it will vary while the tax is adjusted over the year.
For example, initially the tax paid may be quite high but once the tax code is settled upon the payslips will give the same Net pay figure after a while. Then if there are any Tax code changes during the year, these will then affect the Net pay.

Looking at my payslips from July 08 through to April 09, only Jan Feb Mar had the same take home pay.

Using ListenToTaxman.com I calculate £8516.45 per year Gross is £150 net per week but the amount will vary depending on the tax code during the year. So initially it gives you a starting point.
If you can, see if you can renegotiate payment to be X amount gross per month, rather than x amount net per week.