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Does anyone know?............

5 replies

Tas1 · 27/01/2009 18:15

I know that you cannot be a self employed nanny but you can be self employed if you are a maternity nanny, night nanny or a nanny in continuous temporary employment.

so... if i became a nanny in continuous temporary employment, to cover other nannies who are off sick for the day or families who just need a nanny for a day as a one off, how do I go about paying tax and NI?

OP posts:
LadyMuck · 27/01/2009 18:19

You have to register and pay the flat rate class 2 NICs, and then you will pay income tax and class 4 NICs based on your tax return (so you will have to keep records showing all amounts charged, and receipts or records for mileage for tax-deductible expenses eg advertising). Here is the HMRC guide.

Tas1 · 27/01/2009 18:25

Thanks LadyMuck, but what do i class myself as on the form, as soon as i mention Nanny to the Inland Revenue, they tell me I cannot be self employed.

OP posts:
LadyMuck · 27/01/2009 18:56

Put maternity nanny or childcare provider- that has been accepted as being self-employed for quite a while now.

When you submit your first return you can then add more details to what various jobs comprised. It is of course possible for some jobs to be self-employed but for other to be as an employee, though if you are only ever doing short term cover then you will probably get away with self-employed. But HMRC may at some point want details about the hour, length of job and what the duties entailed.

Tas1 · 27/01/2009 22:17

Thank you, just one more question if I may.
Could I be employed for 3 days a week by a family and they pay my tax & NI through nannytax as usual, then on my 2 days off be self employed as mentioned above, doing sick cover for example?

OP posts:
LadyMuck · 28/01/2009 08:40

Yes. For tax purposes you look at each "job" independently. For your tax return you would declare both incomes, though you would have already suffered PAYE on the 3 day one.

If you had an idea of how much you were goign to earn as self-employed, yet also had a PAYE job, then you could contact HMRC and get them to adjust your tax code to take account of your self-employed earnings.

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