Will nannies finally see the light with Gross salaries?

[K75]

Looks like our nanny will get about £13 extra a week (net) as she is paid gross by us. Will put her in a good position vs. her net frends.

(Assuming base rate increase to 10K goes into law)

Do you not operate PAYE for her?

yes of course

What K75 means I think is... nannies who have agreed a Gross salary in their contract will find that their take home pay will go up assuming there are changes to the tax free allowance. Whereas nannies who have agreed a Net wage (without a gross wage being mentioned in their contract) will still be getting the same take home page... they won't see the increase.

Ah I misunderstood

page? where did that come from Should be Wage of course.

Will nannies finally see the light with Gross salaries?

No I expect not. Some nannies don't seem to understand how PAYE works, while others do. Without them understanding how it makes a difference I'm not sure if putting a money value on the difference helps - as that happens every tax year... the amounts change a bit. This time they may change by quite a bit... or the change may be phased over a period of time, so the change may not be as noticeable.
£13 a week does not seem that large a change... if it were £50 a week then maybe more nannies would take notice.

i've never understood why nannies agree a net salary when EVERYBODY else gets a gross amount either salaried or per hour.

is there anybody else in any other profession who speaks in terms of net?

No idea - but drives me slightly nuts! Agree £13 no miracle; but some nannies here moan about £5 more...so you never know.

I've often talked net at interviews as even employers have said we will be paying £X net per hour, but I've always asked for the gross amount to be put into my contract.

I was only talking rates of pay last night as I am in the process of sorting out contracts with my new employer from September.

Unfort it us often the nanny agencys fault as well as nannytax etc

I have gone for jobs and agencys state £8/10 nett etc. I ask what that is in daily/weekly gross and they normally say I don't know/can't work it out etc

I go for interviews and say to family will be gross salary of xxxxxx and then familys turn round an say what is that nett a hour/day/week etc as AGENCYS tellthem xxx nett

This is where some regulation of agencies may help. If all agencies had to show Gross salaries then nannies and employers may then change to using Gross.
Unfortunately there is very little regulation of recruitment agencies. Very few nanny agencies seem to be members of ANA. If the big chain agencies and ANA all decide to go Gross, then perhaps we will see a change.
Is it worth lobbying the large agencies, ANA, REC etc?

being self employed, I only work in gross figures.

I think that slowly, more nannies are asking for gross and some agencies are using gross too which helps.

as a nanny i always insisted on having gross in my contract!!!

and at times had to fight with my bosses explaining to them the reason why!!!

I always talk in gross but i find most agencys always use net so it can be confusing when going for interveiws.

I think part of the reason for agencies prefering to stick with net is that the London agencies especially place a lot of nannies abroad. Tax varies massively from country to country. The same gross salary in somewhere like Dubai will net a much larger amount than here. Talking in net allows easy comparison of take home pay around the world, which is all anyone is interested in when it comes down to it. It also means that families in low tax countries don't have to pay as much for their nanny, which means more work for agencies for the same fees as they base their own fees on the net salary offered.

I only work gross but the point about jobs abroad is veryv accurate and why some agencies still do quote net.

But this tax increase is exactly why I insist on having gross in a contract!

Seems a bit of a strange reason to me... agencies I deal with don't do jobs abroad. They often don't even do jobs in a neighbouring county.
While a nanny in London looking at working abroad or in the UK may want to compare their take-home pay in each job... can't see why that should affect all other nannies throughout the UK.

Agencies "base their own fees on the net salary offered".

Maybe that needs to be changed. There are agencies in the UK who offer fixed price already.

Agencies doing International jobs could always give both the Gross and the Net.

Perhaps that would be a starting point - getting agencies to list jobs with both Net and Gross.

Thing is the 'big' agencies are the ones with overseas jobs, who quote net because gross for Belgium is huge (50% tax) and Dubai is tiny (tax-free). So they just say net for everything, which means they list all their domestic jobs net and everyone else follow suit.

It's ridiculously easy to work out gross from net, assuming a normal tax code though. Don't know why more don't....

Glad to see there are some enlightened nannies out there.

so what does this mean for the employer? Our contract says both gross and net - doh!

chandellina - no idea but I would hazard a guess that as you have gross stated that should be the figure taken which is there precisely because it's not subject to fluctuations depending on tax code/legislation change etc.

It would kill these agencies to quote both gross and net, wouldn't it? I mean, to actually WORK for their fee and put a bit of effort in. To join the world of the taxation GROWN UPS!

I don't think they should be able to base their fees on salary rates either. It takes no more effort to place someone for £300 pw than £500 pw, yet they pretend it does.