Hi
I've just started to employ a nanny for a couple of days a week and have just started wrestling with her tax which is due next month.
When I rang the new employers' helpline to register they asked how much I'd be paying her - I said £160 a week.
This also happens to be the threshold of 'taxable pay' to make deductions through the simplified deduction scheme rather than full PAYE.
The lady said fine that I could use the simplified scheme and the cost to me would be something like £181 per week. Because of this I assumed that they'd worked on the £160 being net which is what I meant.
Now I'm looking throught the info they've sent and I think that the £160 should also inlcude NI contributions etc. And I really can't figure out if tax should be in there too as the tables go up to £160 but say £32 deduction is due for that level.
So I have no idea how to get to a sum of £181 per week cost to me?
Anyone know what the definition of 'taxable pay' really is.
And also how do I factor in her tax free allowance - extracted a P45 from previous employer only in the last few weeks
thanks for any help