taxing a part time nanny

[else1196]

we are employoing a part time nanny from slovakia for three hours per day, paying £100/wk. Do we have to register her/ pay tax?

yes!

as well as her tax you also have to pay your employers NI contributions

yes, but make sure you pay her in gross. If she gets another job, you don't want to risk being responsible for thehigher tax bracket if her other job gets the lower one. Ans as the position is part time this is a real possibility.

And taxes on £100/week is very low.

Is she live-in or live-out? I ask because if she is live-out she will not be able to live on that and will definitely be getting another job.

£100 per week = £5200 / year which is over the maximum you are allowed tax free so tax will have to be paid

Uh, did someone say it wouldn't? What with the bold will?

phone the IR help line, they are very helpful. you need to get tax code for your nanny to know how much to deduct etc. is that the net or gross ie how much does she think she will take home. if that is take home, tax and NI (EE and Er) will be on top of that ie an additional cost to you.