Having chat tomorrow with friend who may take over childcare of my children what to discuss?? ideas please

[Tigger13]

HI

I have a Ds6, DS 3(almost4) and a DS15mths, I work 22hours week being 1 8hr day and 2 8.30-14.30 day and rest of time at home in evenings, I have only been back to work from mat for few months but not entirely happy with new CM, has dogs, lots of children and charges for everything, feels more like a nursery, anyway CM is now looking for other jobs has interview last wk which didn't get but won;t be long b4 happens. B4 I found out about other job a neighbor who I know enough to trust and like but not in each other pockets has suggested she has my boys as she is SAHM and her youngest is same age as mine and rest in school.

I am quite keen about this but want to know where I stand legally, she would look after them mainly in my house and use her own car if needed, would only do 2days as parents help out.

What do you think, anyone done the same? how much did you pay? what do I need to agree etc I sickess, leave etc??

Thanks just a bit lost and always worry about childcare!

A friend and I considered this, where I would look after her DS in my house. The plan basically came to nothing because it would have been illegal for me to do this without registering as a childminder (which you need to do if you look after the child for more than 2 hours a day), and that process of registering was very involved (having to go on numerous training courses etc) and would have taken many months.

So from what you've said, your neighbour would need to become a registered childminder, and that isn't as simple as just filling in a form.

Have a look at the National Childminding Association - but bear in mind differnet local authorities have different procedures too. So, for example, in mine (Hertfordshire) there is a massive waiting list to even go to an "expressions of interest" session.

If she's looking after them in your house, I have a feeling that makes her a nanny, rather than a childminder, and I'm not convinced the law that Wigeon is quoting applies. But I'm not an expert and there are other people on here who are!

Thanks for that, yes it would be in my house she is NNEB qualified but for 2days a week does not want to be a childminder and ofsted regulated as its a huge process and not cost effective for what I am thinking

Would I be breaking the law employing her as a nanny and paying her without registering as a employee?

Oh, yes, sorry, if she was in your house then she is a nanny and doesn't have to register as a childminder (sorry, missed that bit!). My friend and I looked into that (ie me going to her house) but it just wasn't practical. I don't know about employing a nanny I'm afraid!

as it is in your house you will be employing her as a nanny so you will need to register to pay her tax and ni

Thanks wigeon

Is there a minimum amount to do this or is this for any amount?? to pay tax and NI I mean?

How much do people pay nannies per day roughly??

HMRC: Introduction to PAYE - This may help with your questions regarding paying Tax/NI/Employers NI.

Roughly nannies are paid anywhere from £70-£120 gross a day.
Minimum pay to be legal would be National Minimum Wage (which varies according to the person's age plus will change from time to time).

Is she looking after her own children at the same time as yours - in which case you could view it as a nanny-share and offer to pay just over half of the amount a non-shared nanny would get in your area (although she may want more).
The cut-off for not having to pay NI is about £95 a week (check Nannynick's link for actual amount). Paying NI/Tax is not that complicated - you can pay a payroll firm to work out how much is due, you send a cheque to them every 3 months, they provide payslips/advice.
For a nanny you would also expect to pay for her meals, give an allowance for trips out/playgroups etc, and petrol/car expenses, plus paid holiday.

Could she not be a self employed nanny then it's all upto her to sort out her contributions and tax etc?

Check out this site on nanny tax: www.nannytax.co.uk/nanny-agencies/useful-information/self-employment

Also, if she's not ofsted registered I don't think you will be able to use childcare vouchers, in case you were planning on doing so.

She would also have to be registered and have business class 1 insurance for her car to be insured to carry your children. It does start to get complicated if you start paying a friend to do childcare, you can't claim childcare vouchers or the childcare element on tax credits either if she is not registered.If you do pay her and she does not declare it I think you also become liable for her tax etc.

Hiya I have just moved happily from childminder (similar reasons to you) to using a friend. We are much happier, however we have very clearly agreed things like: sick time, hourly rates, holidays, overtime, nap times, food, the works! Its much better to be upfront about everything. I actually pay her the same hourely rate as CM , however as she does not charge for non work time, I save enough money to offset the fact that I cant apply for tax credit. If you are not 100% sure agree a 3 month trial. But definately get 100% clear on "what to do when her kid is sick" and things like that so wheh situation arises you know what to do

BTW we have an informal baby sitting agreement, no tax, no contracts etc. This does mean I cant get tax credit etc. However it is only for 1 day a week....

hi is your friend looking to do it as a job or is is just one friend helping out another as a favour so doesnt expect to be paid if thats the case she has no legal requirements to go by. and if the childcare is in your house then it doesnt matter about the 2 hr rule that only applys if it is at there house plus if they are being paid for it.