Paying for childcare cash in hand

[Nanga]

My sister is about to employ someone to look after her baby girl, 9 months. This girl (aged 22) is an experienced nanny and former nursery nurse, and has become quite close to my sister, as she babysits regularly and has got to know the family very well. She absolutely dotes on both my niece and nephew, and she's a really lovely girl.

My sister has said to her that she'd love her to look after her DD but can't afford the nanny rates. (DD is currently with a childminder) But as this girl now has her own baby, she's said she's quite happy to look after her DD, in their own home, just like a nanny, but on childminding rates (£5 per hour) if it means she can bring her baby along too. Sounds too good to be true huh?

Only problem is, the girl has asked that she's paid cash in hand, obviously to make up for the fact that she'll be on a much reduced rate.

I'd appreciate thoughts on this. The girl obviously knows she's not entitled therefore to national insurance contribs, sick pay, maternity pay etc, but she's SO keen to work for my sister and to look after her DD that she doesn't seem bothered by this. Apart from the obvious MORAL issue of not paying tax, what other problems should she consider?

I personally wouldn't. Aside from the moral implications it would leave you potentially legally exposed. How would you have a contract for example without writing in details of pay? There's no way I'd have someone looking after my dcs without a contract.

I don't get this really, why doesn't she just work as a Nanny for your sister, ok so she's not on the usual nanny payscale but it sounds like the arrangement suits them both equally well.

I would not pay cash in hand, too many implications for problems as well as the legalities of doing so.

Is she asking to be paid cash in hand so she can still claim benefits maybe?

As an employer paying Cash lets your sister open to prosecution & very large fines

NI & Income Tax aren't optional

To put it simply your sister could be find £10k if caught paying this girl cash in hand.

Your sister should just employ her properly declare that she is an employer and the nanny should pay tax and NI. She wont be paying much anyway!

dodgy for all concerned.all need explicit legal employment contract with boundaries and expectations

why is nanny so keen on cash in hand?is she also claiming benefits and doesn't want to lose them?

is your sister doesnt want to be an employer maybe the girl could become self employed then its up to her to sort out her own tax and NI and if she doesnt then it falls bk on her not your sister

Bad Idea, cash in hand. At least she won't have to pay very much tax and NI, unlike here in Holland where I pay 42%!!!!!!

I suspect she's claiming benefits and doesn't want to declare her earnings as she'll lose them. Not good character traits really, dishonesty and fraudulent behaviour.

but she couldn't be a self employed nanny she'd have to train to be a childminder if she wanted to be self employed.

tell you sister DONT do it

its illegal and she can , if caught, be fined £3k+ and possibly prison fine

sister needs to pay her nmw of £5.80gross so for a 10hr day £58 gross

unless the nanny decides to register as a cm and then sister pay £5ph

She could still work for her as min gross wage and then your sister pays tax and NI she may be below the threshold depending on hrs worked.

She is not doing anything unusual in taking a reduced rate for bringing own child and I would guess min wage would be about right for someone of her age and experience bringing own baby to work.

A contract needs to be in place for both parties peace of mind and secruity