employment

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Hi,been going through hmrc but just can't find what im looking for.
to find out if a nanny working permanently two days for one famkily and permanently 1 day for another family would count as employed in both jobs? or if working just one day and getting cash weekly can not mean 'employed' but something else eg self-employed, and the other job??? no contract yet so want to know how to do it. pretty sure both mean employed but wanted to check. Does anyone know relevant section i should be looking at please please?

also if it is employed would it be one or two tax codes i need and who gets tax free allowance?

it is so confusing.
thank you for reading

Are you the nanny or the employer???

Generally speaking the nanny would be an employee in both jobs. Employment status isn't a clear cut thing, thus why you won't be able to find a perfect answer there. There are just too many factors to take into account. However a nanny due to the type of work it is, is nearly always going to be an employee in my view - as they don't have much if any control.

HMRC: Employment Status - This may be of help, lots of fun reading.

Leave tax code allocation up to HMRC I would suggest. For the primary job (the one paying the most money) give them your P45 or complete a P46 stating it is the primary job. Then do the lesser paid/less time job as a secondary job. That will then start you off as having all your tax free personal allowance allocated to your primary job and paying tax on everything earned in the second job.

Agree the salary as Gross. Assuming you are the nanny, it will be easier for your employers if they start from knowing the Gross amount when working out payroll.

Agree with everything nick says but also to add re: the cash payment that how one is paid - cash, bank transfer, cheque or chocolate - doesn't matter because the amount being paid is still subject to tax and NI.

A lot of people offer to pay in cash and mean pay under the table.

thanks for you quick repsonses! i'm nanny with well over 5 years experience and qualified so thought i knew it would be employed but parents suggest it might be down to me to organise tax and know for sure what to tell them about tax codes as it is my career I should know. Never done it before. Well I would be getting paid holidays and be in their home following their routine.

So to agree £10 net as gross this would mean a higher figure than the gross one for the 2 day position? Not sure this would be fair if they don't get some allowance, expecially as it is only on e day? Maybe they have to get some. How do I work out gross figure if they do get some of the allowance- or can't they at all? also does this gross figure include employers NI- whatever that is? too many questions. thank you thank you!

Er no. Not down to you. Definitely down to them....

Agree both as gross and then it makes no difference to you where you pay tax. That figure doesn't include employers NI which is something like 12%. You can use a calculator such as www.listentotaxman.com to calculate what £10 net would be as gross. It's around £13.50 I think - pretty sure we've worked it out before - but do check.

There are ways to split the tax code but HMRC have to decide that and do it for you. Would they expect a secretary or an admin assistant to know their tax code? I think not!

calculator.kistax.com will do net to Gross.

thanks all. Really helpful links. thank you. Will show them. So how are parents meant to know what to do. I suppose I have more experience of nanny things than them but not enough obviously. wonder if cleaners are employed? was in a panic this morning as I really want this to work out but have a bit of perspective now. Good to know others share my views. Hope the gross figure not too much of a shock and won't be resented.

HMRC document P49 talks a new employer through first time doing the payroll run. Nanny Payroll companies can take care of things for parents if they find doing the payroll tricky, or want someone else to do most of it.