How much are live-in nannies?

[Saila]

Hello

very quick question

how much do people pay live-in nannies (close proximity to ED train st and LL)

double bed attic room with own bathroom and mini kitchenette (microwave/sink/kettle) - do these things make a difference i.e room/location?

thanks!

[charlottep]

I was told by simplychildcare that they get in the region of ?350 net a week (about ?497 gross). It would be good to hear what people locally are paying in reality.

[Saila]

So compared to a live-out nanny that's ?100 cheaper, which is approx the same as rent in the area?

so that makes sense really?

But there's no synergies. I.e. you could just as easily rent the room out and they'd be no financial difference. Although it's nicer to have the nanny around all the time for the children and means they can easily babysit too.

rather clinical all this but needs must....

[Otto]

If you go for a live in au pair - it is much more affordable. They generally are limited to 20 or so hours a week, or, you can opt to pay more for more hours. We have paid from 60 - 90pounds per week for our au pairs, according to our needs, etc. Our hours have been fairly minimal. Plus food. Room, location, etc make little difference as to the pay, but, a good person will expect a decent room, wifi access, and a good degree of personal freedom and space. A bicycle is also handy.

[Saila]

hmmm... so perhaps nursery for short days and au pair is the ideal option in terms of affordability

also i quite like the idea of my kids hanging out with other kids rather than just a nanny.... and my cats!

thanks otto & charlotte - really helpful

[Otto]

I might add that au pairs are not professionally qualified as a nannie is - hence the pay difference. From our experience au pairs are great - you will spend a few weeks helping them understand your families needs, but, we've had many success stories here...

We found most of ours on universalaupairs.com - a really useful source.

[charlottep]

But au pairs can't look after children under two can they? Thx

[dulwichmum]

Yes indeed. Au pairs are not appropriate for kids under two and a half.

[Fuschia]

Saila Wrote:

-------------------------------------------------------

>

> But there's no synergies. I.e. you could just as

> easily rent the room out and they'd be no

> financial difference.

Except you'd pay tax on the income

Though if a nanny gets accommodation, is that taxed anyway?

[Saila]

of course tax.. is this how it'd work?

1. Live-in nanny pay and tax

e.g. 350 and 150 total 500 per week

total ?2,150 per month assuming 4.3 weeks / month

total tax 150 / week

2. Rent a room 430 a month less tax of 13

live out nanny costing 650

total 2,378 per month assuming 4.3 weeks / month (?100 a week rent)

total tax approx 200 a week

3. Rent a room 645 a month less tax of ?47 is 598 a month

live out nany costs 650 a week

total 2,197 per month assuming 4.3 weeks/ month (?150 rent)

total tax 250

so it's cheaper to have a live in nanny depending on how much you can rent the room out separately

if you can get >?150 per week for your attic room or whatever, then it's worth having a live out nanny but it'd still be marginal

is this right?

looks like live-in is best option financially

[Fuschia]

It doesn't look to me like you have the correct tax for the room rental... if you exceed the 4250 allwed tax free under the rent aroom scheme, then you pay tax on the whole profit (ie income less any expenses)

I don't quite follow your calcs re the live in nanny... 500 gross pay 350 + 150 tax? I suspect tax is chargeable on the benefit in kind (accmomodation)

http://www.hmrc.gov.uk/paye/exb/a-z/l/accommodation.htm

[Fuschia]

A nanny tax agency will know whether the accomodation can be considered a necessary part of the role and hence tax exempt..

[Fuschia]

THis http://www.hireananny.co.uk/Nannytax%20brochure_hireananny.pdf seems to state that it's only considered a benefit in kind if itb has its own front door etc

[Saila]

If your gross income is above the rent-a-room limit

If you receive more than ?4,250 (or ?2,125) you can choose either to:

A: pay tax on your profits in the normal way for a rental business (by paying tax on your actual profit after deducting expenses); or

B: pay tax on your gross income less the ?4,250 (or ?2,125) limit, with no allowance for expenses.

So for a room at ?100 a week (?5,200) is 950 taxed

950 * 30% is ?20 a month (but this depends on your tax rate?)

the ?350 a week and ?150 is what charlottep said in an earlier post?

[womanofdulwich]

I think some nannies might take some salary ( fully NI and taxed- say 80%)-and some cash ( undeclared) but don't quote me on this as it was a long time ago.......