can I afford a nanny on this salary? (and is it worth it)

[MissChief]

hi-contemplating going back to work soon on half-time basis and looking into childcare options for my children - 5 yr old (just at school so need before & after school care) and 5 mth old baby.
I earn £40k pro-rata so any ball-park figures for what I might have left per month after paying a nanny for 2 1/2 days a week, her NI etc?
Many thanks in advance!

How did you come up with 2 1/2 days? What hours do you need? The cost of a nanny varies, anywhere from £6 to £15 per hour (gross). If you have spacfe for a live-in nanny it is a lot cheaper. If you are looking at live-out and are in london, you are looking at the higher end of this range.

so will you be earning 40k or 20k for 2.5 days?

oh and where do you live?

if you earn 20K I would think not worth it, get a childminder
if you earn 40K and you are not the main breadwinner then a nanny would be doable

I was looking at getting a nanny for 3 days/wk a while back and reckoned it would cost me not more than £900 a month (we are in northeast england, I think I was assuming around £7 per hour net pay rate). This was more than 2 children at nursery, but not hugely more. One of the nanny tax service sites (nannytax or nannypaye) has a very useful breakdown of the total costs iirc.
Depends on your total household income and outgoings whether you can afford it. Always bugs me when women think that childcare costs are theirs alone!

I worked it out once at £11 per hour in Dorset (including paying their tax)

remember you are liable for their tax

Is a nanny share possible for you? Might be a way of reducing costs significantly, so that you can more easily afford the wonderful care a nanny can provide.

thanks for your advice - to clarify my salary is £40k when pro-rated will be £20k- I do half-time so doesn't have to be 2 1/2 days a week, but thought would be easier. live in home counties so London prices as far as I can tell childcare wise in local area. I would consider nannyshare but worried might be too much when both children being looked after at same time, for school run etc

looking at some of yr messages, unlikely to be worth it on my salary alone (I'm not main breadwinner but childcare cost is 1 of main deciding factors for me on whether go back or not). I know I'm not the only one in this situation but feel rather stuck - not really got room for live-in nanny, feel baby too young for au-pair, don't want to chuck 5 yr old in huge local after-school club and don't know any local childminders (would only go this route if word-of -mouth recommendation)! Sorry, just letting off steam I know lots of mums are in sim or worse situation..

What about an au pair / childminder combination? The little one could spend the day at the childminder, and the aupair could prepare food, do the school run, etc. It might lighten your load with being quite as expensive as a nanny.

yes it is difficult. My ds1 started at preschool nursery (full time school hours) in Sept so I was also thinking about full days for one child and before/after school for the other. In the end I have gone with the after school club - couldn't find a childminder, and can't really get enthusiastic about a nanny - it all seems rather complicated and a bit risky. I still haver about it though - but on the whole ds1 seems to be surviving after school club (well actually he enjoys it, its only me that has the problem with it!) and its only for 2 days/wk anyway.

Hmm sounds a tall order on 20k tbh.

Nanny shares depend on what you need TBH, you sometimes get ones who do 3 days for one family and 2 for another - so no extra kids/school runs - but still could work for you. We did a nanny on £20K a year but it was nearly impossible and it meant dh basically had £50 a week (his salary paid for childcare) but it was full time.

Personally I loved a nanny and would recommend it it isn't that much more than 2 childcare places elsewhere.

many 5 year olds enjoy after school club. it might be worth trying it, especially as it would only be 2 or 3 days a week if you're half time. my 5 year old goes once or twice a week and asks to go more. some of her friends go who have SAHMs - it's a sort of social space for them. They can be very good even at this age.

Go to home on Mumsnet and click on the link for SharingCare and see if it is possible to share a nanny! Looks good.

I would have thought it doable on that salary, but not much (nothing) left over. I work for nothing after childcare. I'm finding life with a nanny is much nicer than life with a child in nursery / CM. Is it worth you hanging in there for when they're both at school and you can use an au pair or similar cheaper option?
Best of luck.

I'm in the same situation - at the moment have 1 in nursery and 1 at school but the before school care is going to have to change. I am toying with the idea of combining nursery plus au pair (but loathe to give up the spare room), have looked at nanny shares but it is really difficult to find someone who you really feel 'right' with, and have now been approached by ds's former nursery nurse who is looking to nanny now she has had a baby...by bringing her baby with her she is less expensive than other qualified nannys so it may work out.
I'm dithering though, such a big step to take, and there's a year's waiting list at the nursery so if we take dd out then change our minds we can't get her back in again.
I found the calculator at nannytax.co.uk useful to work out gross salaries and some info at www.childcareapprovalscheme.co.uk was helpful but scarey. (That site is mainly about how to register a nanny so you can pay them with childcare vouchers and save tax but they have a downloadable booklet about all aspects of employing a nanny (insurances, health and safety etc)).
Good luck.

All I know is that it is so much nicer at 6.30pm knowing that your children are in their pyjamas in their own home, rather than being driven home on a cold winter's night!!!! plus their laundry will have been done. Don't underestimate the other values of having a nanny in the home.....

I would have thought that a part time nanny on a part-time salary of £20k was do-able...I'm not sure how to explain this, but since you will be paying the nanny p/t, a lower proportion of her salary will be taxable, as will yours, so it should be a bit more exonomical. Also, I think you can use childcare vouchers for a nanny in some circumstances - and taken as a salary sacrifice that means you could get up to £217 of your income tax and NI free each month.

As Blu has just said, there is a difference between the half the cost of a full time nanny and the cost of a nanny 50% of the time - that's why I had to use the nannytax calculator so much

The 'registering' of the nanny so you can get tax relief by using childcare vouchers (if your employer offers this), seems straightforward but costs £96 a year (see my other link) which takes away a little of the saving (unless you make the nanny pay it himself/herself).

At the moment I am working school hours and picking up the kids at 3.30 - I find it difficult to believe that, for the previous 4 years, I've been picking them up at 6pm, getting them suited and booted and pushing the buggy home in the dark. I really don't want to go back to that, hence part of my nanny 'craving'.

Nanny share sounds ideal for you - either a nanny who does 4/5 days elsewhere and adds you in as required or a nanny with a baby for example who does part week with you and maybe a day or two elsewhere. Tax with shared care needs thinking about - who gets the benefit of the tax free allowance - basically if nanny is shared the allowances should be too. Would it help if you worked 3 full days if this is possible?

Agree with everyone who is positive about virtues of a nanny - I could never go back (well am giving up working for someone else so I am going to have to but that is another story)