Help! Tax and nanny's!!

[ClareC]

Another nanny pay question.....

I intend to go back to work in January part time, 3 days per week. I have found a fantastic nanny that is looking for a position for 3 days a week - Perfect!

Having looked at the nanny tax website posted on here, it would seem that 1 day per week, net and gross pay is very similiar, day 2 gross is slightly more whereas day 3 there is a huge difference (significant tax and NI to pay in addition to net salary). Obviously this is due to the annual tax allowance and tax banding, ie if a nanny worked just one day a week she would be tax exempt for the majority of her income

The bit I am not sure about though is that I know she works the other 2 days of the week.... if I pay as per the website that is presumably based upon those 3 days being her sole income. How do you factor in that you are not the sole employer?

Any advice gratefully received!!

[Moos]

I think you would need to talk to an agency and get her other employers to also show them their pay and calculations, so you can pro-rate the pay and tax appropriately.

If nannies worked as contractors, then it would be up to them to contract out their services and pay tax as self-employed people, however I think they are always treated as employees which means that the responsibility for paying the correct tax lies with the joint employers.

Nanny agencies are used to dealing with nanny shares so they would be easily able to help you.

Best of luck!

[ClareC]

Thankyou, didn't really think of it as a nanny share given we haven't organised it with the other family but I suppose it is in reality. Any recommendations out there for nanny agencies that could do this? What do they charge and would they still act given they haven't been involved in the nanny finding side of things.

[Moos]

"Nannytax" did it for us. We were in a more classic nanny share arrangement but they were really helpful even though the other family were using a different nanny tax agency. Do shop around though, as prices can vary for what is essentially a standard service.

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