Paying a nanny cash in hand = advice needed

[Hackers79]

Hi,

Recently found a lovely nanny share with a family. The cost of the nanny is fine but firstly I can't use childcare vouchers from work because she is not registered with ofsted (pain, but fine), but the arrangement seems very loose between the mum and the nanny and they pay her cash in hand. I'm quite new to the whole nanny share idea but I asked certain question about what was the arrangement for holidays and they said nothing was in place. I asked how much I'd need a contribute to food and again they hadn't thought about it.

Please can i have some advice as to why I shouldn't pay cash in hand. I understand I'm liable if the nanny isn't paying tax (which she can't be??)

Thanks for any help.
x

dont do it

you will be fined £3000 if inland rev find out...
and when they notice she is not officially unemployed OR sick OR claiming benefits OR "working" they will be soon looking into her to find out how she is geting money to live.

dont get caught up in it

I personally think it si very unlikely anyone will notice. But, still probably not worth the risk.

Hoever, I once had a nanny (whom I paid on the books) but we shared with another family. Nanny arranged this. I said it was fine. I stayed out of their financial affairs. But the y paid her cash in hand, when she worked, no hols, didn't pay her if they cancelled last minute, etc. No one found out. They were both happy -- although nanny did get a bit brassed off at the end with last minute cancellations and no pay.

I'm sure loads of people do this and never get caught.

However, I personally am a terrible liar and wouldn't do it.

I don't think she could be insured either?

Why don't you just suggest you all employ her properly?

I know a nanny who was sent a totally random inland rev. form and had to declare all her earnings for past tax year -

so, my ideas:

would this nanny lie on an official form to protect the parents? - what if IR then asked for proof e.g. payslips, bank statements etc.

Tax claims and investigations can also be back dated by 7? years- nannynick? - do you want this possibility hanging over you?

ALso, if for whatever reason it seriously didn't work out with nanny e.g. re. holidays/maternity/other expectations etc. she could always have quick word with IR.

Not worth it and you are the employer so it just needs to be done i'm afraid.

Yes, I sent an email to the other mum this evening gently saying I felt a little bit uncomfortable about the arrangement. I'll see how she replies. I think it would always play on my mind and if anything did happen, then I suppose I could lose my childcare overnight which would be awful..thanks for replies.

why dont you pay for her to be ofsted and then you can use the vouchers?

personally i wouldnt EVER take a job on where the parents are going to pay MY tax and ni on top - it is still part of my wage - just that they pay it on my behalf

if the other mum isnt going to pay this nannys tax, i would look for another nanny share tbh

the only reason some employers wont pay the tax, is that there are nannies who will let them get away with it

Just because the other mum pays her cash in hand doesn't mena you need to. Hire her on the books and leave the other mum to sort out her own financial affairs. It's nothing to do with you so long as you have two separate contracts.

You have just reminded me about contacting the tax people I haven't done that since my last job (finished ast November!) and they keep asking after me and I keep forgetting... whoops...

I'm paid cash in hand, but I'm in an AP/MH position and do less than 30 hours a week and earn less than what the tax people need to see, so if you're in the same sort of position (i.e. she's earning under the tax barrier) then it might be okay, but I don't think that is actually the case(?) so I would not do it if I were you!

And before you all tell me about tax and ni, yes I know, I'm not getting it, but tbh, I am slowly learning about all of the legalities and will happily finish out my 'contract' wth this family without worrying, as I'm only here till the beginning of '10!

pixinanny...

i dont see how doing less than 30n hours makes a difference.

also the reason employers get inh trouble is because while not passing on nannies tax and NI to inland rev they are also not passing on their own employers NI contributions, which they have to pay...
inland rev (quite rightly) see this as tax (or NI) evasion and fine accordingly.

agree with blondes that parents only get away with paying cash in hand if nannies let them!
And nannies who dont mind really are pretty stupid IMO... as would not be entiled to sick or maternity pay etc, wont get full state pension when older and wil find it difficult to prove their salary for a mortgage etc

We are working people like the rest of the people who work in this country so why should we be any different?
I cant imagine going for a job in Tesco etc and suggesting that tesco dont pay your tax and NI

I wouldn't go into this share. It sounds a nightmare tbh. Cash in hand, no idea about holiday cover, no one seems to know what will happen with regard to paying for food etc.

When I did a nanny share we had alternate months at each house, one family paid me, and whosever house was being worked in, they paid for food and nappies for the children.