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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

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Original poster

Nannies and tax

34 replies

nesomja · 04/07/2010 19:54

My question is, how many people employ nannies and pay cash in hand without paying their tax? We are just looking into nannies and childminders - for 2 days a week, and everyone we know who employs a 'nanny' - not qualified - does it illegally, not paying their tax. We are realising that if we do pay the tax we just can't afford a nanny as prices seem to be quoted as net and in London people expect at least £8-12/hour net. Before this I always assumed they were responsible for their own tax and NI but I am now better informed...
I feel very uncomfortable about this illegal market but I also feel a nanny would be best for my son.
What do others do?

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Laquitar · 05/07/2010 13:30

ok then. I thought you meant nanny gets paid in cash and she doesn't declare it (in which case she cant get mortgage). If SE, i agree no problem.

Missus84 · 05/07/2010 15:50

The kind of nanny who is happy to be paid cash in hand is likely to be a student or in the country temporarily or claiming benefits or maybe not working legally - so unlikely to be worried about maternity pay or a mortgage.

Strix · 05/07/2010 15:55

I too find I am in the RL minority when it comes to legal employment (including but not limited to tax) of my nanny. I ws out with some other mums before the election. We were debating politics, and one mum commented that she thought child benefit should be cut for anyone earning over £50k because they don't really need it so should give it to someone who does.

BUT....

I happen to know through a very reliable grapevine that this mum pays her nanny cash in hand. So, I was sitting there thinking "Hmmm... perhpas you should pay tax then??" I didn't say anything and she doesn't know I know about her CIH arrangement. But it of course worth knowing that nannies talk and if you pay her CIH it is probably common knowledge around the school gate nanny circle.

chandellina · 05/07/2010 20:05

I'm surprised to hear there seem to be so many cash in hand nannies out there. Everyone I know pays tax. (or they are pretending, by complaining about it!)

Don't forget you can use vouchers (at least for a few years yet) for nannies who are Ofsted registered.

K75 · 05/07/2010 20:46

Likewise, everyone i know pays tax but maybe it's skewed by the part of town I am in (SW London) or that most folk I know who employ nannies are colleagues and we'd be front page of the FT if we didn't and got found out. Anyway, I had no idea it was so common.

Seems odd to me folk would take the risk. It's illegal at the end of the day plus it really shows no respect for your employee.

Original poster

nesomja · 05/07/2010 23:28

Thanks for all the thoughts - I think I am off to look for a nanny share! Any ideas as to where good places are to look/ask.
Someone suggested a nursery - we have looked but the good ones around here have at least a year long waiting list, and the bad ones are terrible, I wouldn't leave a dog there.
Am off to look at childminders too but not very hopeful about that one although that was my preferred option at first - the only ones I can find are all in tower blocks so no garden and my son loves being outside...

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StarExpat · 06/07/2010 13:10

where are you locaated nesomja?I know that cms without gardens bring the kids outside a lot...etc... but I personally wouldn't like it if they didn't have a garden either and wouldn't send my child to a home with no garden for daily childcare. Keep looking though - you may find a nice cm nearby. You could also try a nursery....

fridayschild · 06/07/2010 13:18

I thought everyone paid tax... but I have had 3 nannies and 1 mother's help in my time, and I have had to get two of them to get NI numbers when they started working for me so I could pay their tax. All previously "employed" in the UK.

Some agencies will put nanny shares together, and their fees will reflect that . You don't say how old your DC is - how would you feel about sharing a nanny with someone whose kids are at school? My cousin did this with her first child. We nannyshared with some NCT friends before DS2 was born, and both children were the same age.

Original poster

nesomja · 06/07/2010 19:07

My DS is 2 (today!). I'd be happy with him to be nanny sharing with older children, would be more keen on this that younger chidren really. We are in Tower Hamlets, East London. I'm going to visit two childminders on Friday so maybe I will be pleasantly surprised but am going to start looking for nanny shares as well.

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