Self Employed Nanny

[Roxyoc]

Hello - I’m new to hiring a nanny and hoping for some advice. Interviewed a good nanny who said she is self employed therefore a flat rate of £14 per hour with no paid holiday or sick pay..She would only work 28 hours a week for us over 3.5 days. The other days she would work for another family .

Is this legitimate? She said she would invoice us each month then pay her tax twice yearly . She is currently a registered offsted childminder and is planning to ask HMRC to convert this to registered nanny in order to be self employed.

I’m confused by this and would welcome any advice .

Many thanks for reading my post .

I'm dubious. I can't see how, if she is working the same hours every week for you in person, it is legitimately a self-employed scenario as defined by HMRC. And it leaves you open to her deciding not to work for you with zero notice. As I understand the law, it's you who would be on the hook for failing to pay employers tax if HMRC were to deem her employed.

We interviewed a nanny who told us she was self employed. When we looked into it with the agency we used to organise the pay slips, they were very clear that our nanny could not be self employed if working regular hours/ days for us, as Buffy says.

I believe HMRC are very clear and specific that circumstances in which a nanny can be legally self-employed are few and far between. There are some, e.g. a specialist maternity nurse/night nanny who does brief stints with the families of a newborn. But a nanny who does consistent sole care in your home for a regular weekly set of hours is legally an employee.

This is a pretty good guide:
www.nannytax.co.uk/news/top-5-faqs-about-self-employed-nannies

But technically, no she can’t be self employed just working for 2 families on a long term basis and doing set hours

Who is deciding on when the work is done? Do you want someone who can simply say, not coming today!

Mutuality of obligation can be a good indicator of employment status - if you are obligated to provide work and they are obligated to do it, then it is very likely employment.

Why would they not want to be employed - not get a pension contribution, paid holiday, right to notice, Statutory Sick Pay, Statutory Maternity Pay etc. Maybe they are not allowed to have employment for some reason (only reason I can think of is if they are from Turkey and on an entrepreneurs visa).

I would offer them a job, under PAYE, so you as the employer. You decide the pay rate, the hours they work, the days they work. They either accept that or look for someone else who will.

As a nanny I am self employed for some of my work and employed for other parts of my work. I am currently doing a 5 day temp role - self employed. It is a one off booking and I may or may not ever see the client again.

I have a one day per week job, 11 hours per week - it is employment.
I have a 10 hour per month job, the days and work hours are agreed in advance, it is employment.
I have had a job where I was doing 120 hours per month, variable days over 6 days per week, variable hours, all agreed in advance, it was employment.

So unless it is a very temporary role it is likely to be employment.

Self employment is a matter of fact not choice, or else every employer would make all staff self employed.

Regular hours, paid by the hour, no right of substitution, you choose the work, all leads to employment.

Plus, as the engager, you are on the hook if she doesn't pay her tax on the end.

Thanks very much everyone. This is really helpful . Mumsnet rules !