nanny pay - gross versus net

[queasy]

any advice on how much extra it would cost to employ a nanny whose net rate is £95 a day once all the tax and national insurance are included? we are trying to work out if it's viable. thanks!

Net to Gross is tricky. Don't know of any websites that offer that facility currently. www.listentotaxman.com will calculate Gross to Net plus Employers NI. So if you feed that with a starting Gross figure then look at the Net figure, then adjust the Gross, you will eventually get as close to the Net as possible... Thats how I do it.

i had a fiddle, think figures are roughly right, though obv you need to add employers ni on this

£94.98P nett a day is roughly £33k gross - this is take home of £24.694.20 a year

tax would be 5,305.00 a year
NI £3000.80 a year

blimey - put it like that and it makes me realise how expensive nannies are. Thanks!

I agree with BlondesHMF. It's close enough to 33k gross (I make it £33,009 per year gross).

Employers NI is another almost £3500... so salary all in (excluding payroll admin fees if using a payroll agency) would be £36,500.
To pay that, you would need at least a salary of £51,400 per year yourself, leaving you with almost nothing to pay for the extra things that a nanny would expect, such as a weekly kitty for activities.

Depending on where you are located, you may be able to get a live-out nanny for less than £95 net per day.

yah - im was almost right

yes nannies can be exspensive for the average family who say doesnt earn much

if i work full time i earn £35k a year

should i earn less than someone in an office doing an insurance claims job (like my friend)

she earns same salary as me, works 9-5 and gets 5weeks holidays,pension, sickpay etc and never has to wipe a pooey bum

i work long hours and think i deserve and earn my salary

what i will say is that it is unfair that mb/db have to pay employers NI on top

blondes - when you say full time = £35k per year is that full time as in 40 hours a week or (as I suspect) full time nanny hours which are more like 60 hours per week?

10.5/11hrs a day for me so if i work every day would be 52.5/55 a week

compared to my friend who works a 9-5 day so 40hrs a week plus gets 30/60mins for lunch

the point i was making was that a salary of £35K is a good salary but we earn it working long hours compared to someone in an office job who also earsn £35k

dont think i explained it well

Can I just add a spanner in the works.

Waves to blondes ......

the whole nanny employer world is very unique.

I employ 150 staff in my business life the cost of which is a tax deductible expense.

At home I employ a nanny on 350 a week net live in. The cost to me of that is about £30k a year with Ni and the live in costs. But out of my gross salary thats about 50k a year.Tthere are no tax breaks or allowances. ( I am self employed so cant even claim childcare vouchers ).

Yes my nanny works blooming hard and I wouldnt be without her but employing a nanny and looking after her well with perks etc is a bloody expensive business. especially with school fees on top !

I do wonder if this government will ever wake up to that fact and give us some tax relief !

I do agree with what Blondes says, that nannies should be well paid as they work hard & long hours. (I actually believe the same for nursery workers, among other professions, they work so hard & often do a brilliant, important job , & get paid very little) However, its true that nanny employers are NOT big businesses & it's very unfair to be treated as such. For example, the employer's NI is outrageously high. I do understand & completely agree that nannies should be legally employed etc (this is best for everyone involved), however, it's a very unique employer-employee relationship & this should be taken into account, which is isn't.

In all cases where an employer just employs 1-2 people, and particularly in a domestic setting (and this can be proven etc) there should be tax relief, lower employer's NI etc.

Anyway, dream on you can tell me.

waves back to MP

couldnt your nanny be under your company - this is what i was 2 jobs ago - i was named in db company as his pa as he said if i didnt personally assist him bu turning up to look after his children then he couldnt go to work

not sure if was a tax fiddle,but obv i got my tax/ni paid/got payslips etc

thank you maria - obv paying a nanny is a huge chunk out of an employers wages

having to pay an extra £3500 (if having a 5day nanny earning 95/100nett a day) employers NI for what - thats just under £300 a month (£68 a week) - if employers didnt have to pay this, they would be much better off theirselves or could afford to pay the nanny £20more a week

Yes, it is a tax fiddle. There was a high profile case not so long ago of an MP putting her nanny through the books as a pa. She got slated for the wrong doing, but it was never brought up about the injustice of not getting any tax relief for employing a nanny (or indeed for paying for any childcare)

A bit of info on it here

interesting reading - thanks for link - i rem that case being in the news

it was over 10years ago if thats any defence -and was his company where mp wasnt her company

ahhhhhhhhhhh to many mp's

i meant mp as member of p and not mp as mummy p

though mummy p does have her own company then maybe it could work?