Nanny, taxes, NI and being a student...

[verytiredmummy]

I'm on the hunt for childcare for when I go back to work after being on mat leave with my second son.

I've been looking at childminders, who seem to be a staggering £10 an hour for two kids - or £100 a day if you prefer (I don't!). But I've also been emailed by a nanny who sounds brilliant.

She charges £7.50 per hour net and I just wondered if anyone could help me work out how much that means I'd have to pay?

She's actually a student, at uni on the days when she doesn't work, so will she still pay tax? How much is NI?

Why is childcare so complicated?!

Thanks ladies.

x

Try using calculator.kisstax.com
Costs of employing a nanny are usually more than a childminder if you have 2 or less children. There are additional costs apart from salary to take into account, especially things like the cost of outings and transport.

Opps should be calculator.kistax.com

The fact that she is a student does not affect the tax or NI, which are only based on income. If it's 7.5/h/net, depending on the number of hours, it may well end up being £10/h/gross. Plus you'd have the hassle of having an employee as opposed to dealing with a self employod childminder.

Ooh that calculator is brilliant. I can use it to work out my net pay as well. Nanny seems to work out as £9.09 an hour, so 9p more than one of the childminders I have found. Now I might have to draw up a list of pros and cons of each of them. Thanks for the help. x

List of pros and cons will help you to decide.
Remember to include all costs of employing someone, such as holiday entitlement (5.6 weeks), employers NI, payroll admin if not doing it yourself, providing food/drink during working hours, use of a car/mileage allowance, activities budget.

One pro of having a nanny is that you don't have to get children up and dressed in the morning.