All employers of nannies - do you now or will you pay your nanny based on gross amount instead of fixing a net amount as it appears

[watchthisspace]

taxes will almost certainly rise. I have always paid net mainly because all agencies and nannies (thus far) seem to demand it this way. But given the uncertainty surrounding the inevitable rises income taxes I would be interested in finding out if more employers will pay nannies on a gross basis..

poppy34 - i am very spoilt by my family

last 3 bday pressies have been i pod, spa day vouchers and shower gel,body creme, perfume in my fav scent

tbh most nannys as long as you REMEMBER their birthday are happy with a card and hopefully a small gift

i know 3 nannys whose familys forget their birthdays and one had been their nanny 4years and forget every year

depending on what your nanny likes vouchers for books,cinema, spa day etc are always nice

back to gross/nett - how much difference is the salary each month if gross and not nett?

are we talking pennies or pounds?

The difference depends on how much the nanny earns, and his or her tax status (mainly if it is the only or main job).

At £110pw there is no tax or NI to pay, so there is no difference.

At £150pw net the difference is £14, so £164pw gross, plus the employer has to pay £7 employers NI to HMRC on top of that.

At £250pw (perhaps a live-in or part-time live-out) it is £59pw, so £309pw gross( plus £25 employers NI). But note that if this is the nanny's second job so the employer must use the BR tax code, the gross amount is £345, plus £30 employers NI - a difference of over £40 a week. That is why it is not appropriate to expect a net salary on a second job that is the same as on a main job. Or for that matter to expect to double your hours and take home double the pay.

At £500pw it is £171, so £671pw gross (plus £72 employers NI). In this case, the total cost to the employer is nearly 50% more than the nanny takes home.

Definitely not pennies.

sorry i meant monthly pay nett from gross and the difference in what you would get each month ifswim (sorry not explaining very well)

say you earnt £300 a week nett, so just under £20k a year

if i use the basic tax code then would be £302.38 instead of 300 is that right if you earnt excalty 20k?

Oh, I understand you now

Yes, £20k gross per year gives roughly £302 per week for a normal (647L) tax code. It will go up and down by up to £1 because of the way payroll calculations work.

I'm on my second nanny and pay her gross and paid the first nanny gross too. In both cases I used gumtree/nannyjob to find them rather than using agencies and I simply made the offer as a gross figure and giving them the current 'net' equivalent figure - conversion tables are available of some of the nanny websites to provide you with gross and net figures for various salary levels to help with this. I didn't meet resistance from either nanny although another nanny I interviewed insisted she wanted to be paid in net and weekly not monthly. However, I had plenty to choose from who were more accommodating so I think in the current economic climate you are in the driving seat and can specify a gross salary. I would only accommodate a nanny's wishes for a net salary if she was so fab, streets ahead of all the others prepared to take a gross salary, and the only decent, viable option available at the time. I think if you want 'supernanny' with many years experience they may be more likely to demand and expect to get a net salary agreement, but a newer nanny or perhaps an ex-nursery nurse switching to a nanny job may be very happy with a gross salary agreement. It isn't necessarily a bad thing for them, it just isn't the traditional way but I'm a modern employer so I want a modern nanny!

Answer to SycamoretreeisVile - nannytax do the calculations for you if you give them the gross figure - they will tell you the net amount that you need to pay. Even if it varies from month to month (e.g. because of overtime) they will still calculate the figures for you if you notify them of the variations. Hope that answers your question.