if you are a nanny, would you accept less pay if there was lots of time off?

[citybranch]

I think a live out nanny would work really well for our family when I go back in the spring, but looking at what a typical nanny charges here (Essex) it seems pretty unaffordable.

DH and I are both shiftworkers and we plan to do opposing shifts. We are both on a rolling roster and the shift starts and finishes vary wildly, plus we do some weekends and then get days off in the week.
Fulltime childcare seems to be the best option (had p/t childcare after returning to work after DS - it did not work as there was no time for sleep!)

We get a lot of annual leave which we sometimes take at different times, where we wouldn't need a nanny, so could offer this as a perk.

This is kind of what I'm thinking:
Agreed hours 9-6, mon-fri but one weekend required per month (plenty of notice given of which weekend). When the weekend is worked, 2 days off will be in the week.

In addition, at least one half day (or even full day) off in the week, paid. This would fall on our day off midweek, would probably be able to inform which day it would be a week in advance.

12 weeks paid holiday, this would fall on our annual leave dates and be in blocks of one or two weeks. Would be able to inform of dates for the year ahead well in advance. If the nanny needed a particular week or two off we would hopefully be able to arrange that if plenty of notice was given.

Duties would be to look after a 3year old boy and 8 month old girl. Both children in the morning and then drop the 3 year old at nursery at 1pm every day, and then just mind the baby. Nursery, town centre, underground train station, leisure centre, park and surestart centre are all walking distance so driving licence is not necessary.

BUT my budget for the Nanny is only £250 per week (perhaps could stretch to a tiny bit more) and I need to do the tax/N.I. out of that.
Would someone go for this or am I dreaming?
Would the time off be enough of a perk? Any advice/opinions/ideas welcome!

P.S. My employers cannot give me fixed days off because of the roster, so getting a straightforward part-time nanny not an option .

yes i did email, she would look after my DD & DS, drop him at nursery at 1pm, then take DD to other family school pick up and 2 after school activities per week. So it would be a nanny share. She's asking about £70 a day (4 days) so it is a bit more than I can really afford...
I asked if that was net and she said she wasn't sure of before/after tax, but around £70 was what she'd like to take home. She said she gets £1200 gross from the other family but has to pay a lot of tax. Then she asked if I would sort the tax or if she should?

I thought that we always sorted a nanny's tax, it sounds a little vague? She also said she doesn't get any petrol allowance so I'm thinking they have a very informal arrangement.

Any thoughts? I know nothing of this subject!
For the other family she does school pick up nand activities until 6pm, then full time for them in the school holidays.

Be careful! If she is asking you for 70 pounds net and she has already used up her tax allowance with the other family, then you will end up paying a LOT of tax in order to get to her net figure. Ideally, in a nanny share, the nanny's tax free allowance should be split between the families. Yes, if she is working regular days for the other family, she is their employee (as she would be yours) and you are responsible for sorting her tax out. Are the other family not doing this? If not, I'm not sure how she is paying tax, although she must have declared herself self-employed and be arranging it herself? If she has agreed with the other family that she doesn't get a petrol allowance, then that's fine although unusual if she is doing a lot of mileage for them. Is she expecting petrol allowance from you? Again, you need to be careful that you don't end up paying for the other family's mileage. Whose are the after-school activities - yours or the other childrens?

IF you decide to take her on, I would definitely offer her a gross wage. You can use an online tax calculator to work out what 70 net would equate to gross (and remember that you need to pay Employer's NI on top). However, it is you the IR will come after and fine heavily if they decide that she is not self-employed so beware. Have also just realised that (assuming four days a week - again, have got a bit lost in your requirements) the net figure comes to 280 per week which is already above your budget, before you even think about the tax and NI.

In summary, I think what I am saying is keep looking!

agree with annh, be very careful. The nannies tax free allowance may not get split between you and the other family... it may all be allocated to you, as I think you would be paying for more hours (thus likely to be paying more money overall). Though not sure that fits with her earning £1200 gross in other job... to me it seems as though she may be working say 3 hours a day for the other family... is that right? Think I'm getting confused.
Vital that you agree a Gross salary, as the tax situation could change mid-employment. If days are the same, hours the same, the general picture of looking at the job is that you are the employer the nanny is the employee... then operate PAYE. £70 a day take home for the nanny seems to me to be higher than your budget.

Thanks for advice...I felt a bit unsure about it, I expected that someone with 8 yrs experience would know a bit more about the tax implications of their job etc. Also, she is above my budget, but gave the implication that she could waive the price a bit.
What kind of questions could I ask to find out exactly what the set up is with current family, re: tax? Thanks again for all your help, would be lost without this advice!

To clarify, is she asking for 70 pounds a day net as a total amount from both you and the other family - in which case, maybe it will be affordable for you? If she wants 70 pounds from you plus whatever she is getting from the other family (by my rough calculations they are paying her about 50 pounds a day gross) then she would be a very expensive nanny.

I would start by asking her if she is an employee of the other family, if yes, do they pay her tax on her behalf, if no, what is her employment status and if she says she is self-employed, tell her that you will need to see something from IR confirming that, as you could be fined in any IR investigation down the line. My gut feel based on the fact that the other family don't seem to be paying her tax and that she herself seems clueless about the difference between gross/net is that she is either not paying tax at all or under-declaring.

If you feel you are satisfied with her employment status, you also need to look into the practicalities of the nanny-share arrangement. On the days when the other child(ren) do not have after school activities, whose house will the children be in? Yours or the other families? If the other families, will your dd be eating there? Who will be providing the food, high chair etc? As their children are older, is their house babyproof? Are they even going to be happy with this type of arrangement? I know I wouldn't be. Most nanny shares seem to work because the families know each other, share similar parenting values, agree on how they wish the nanny to care for the children etc. Having to possibly force yourself into an alliance with an unknown family to make this share work could be opening up a whole new can of worms.

I think she wants £70 from just our family which does sound like she is a very expensive nanny! I don't think I'll be pursuing this.... from what you have said it all sounds a bit dodgy. I think she might be playing dumb to see if i fall for it. Thank you very much for your in depth responses, you have prob saved me from a whole lot of hassle....