Jump to content

Recommended Posts

Hi all,


We have agreed a net hourly rate with our nanny as that made sense in terms of understanding current rates etc, however as I am setting up payroll I've read about gross pay being the new trend because of new HMRC rules. Does anyone have any further insight into this? Are the potential cost differentials in the 10s, 100s or 1000s? I don't want to go back on our original agreement obviously, but equally want to have a better understanding of the financials.


This was the posting I read: http://www.payefornannies.co.uk/parents/net_vs_gross.htm


Any insight appreciated


Dev

Link to comment
https://www.eastdulwichforum.co.uk/topic/35460-nanny-pay-gross-or-net/
Share on other sites

Hi,

We have just been through the same process. I think the issue is not so much an quantifiable figure but more that if you agree a net wage you are effectively guaranteeing the nanny a certain amount, whatever her personal tax affairs, and you therefore bear those risks. For example, if she had issues with tax from a previous year, you could ultimately pick up those costs. Similarly, if tax or NI went up, you would bear this cost. With a gross wage, that would be her risk. We had an informal agreement on a net wage but did agree to put a gross wage into the contract. If you didn't want to re-trade your agreement, you could put a net wage in the contract but add wording that it is conditional upon a certain personal tax code, no unpaid tax from previous years, no other part time jobs etc.

Good luck with it all.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Latest Discussions

    • What is it that makes Waitrose so special! Admittedly I have shopped a couple of times in the Orpington and Beckenham one - sometimes buying food which I cannot get else where. Their 'basic range' is not bad. Price for price and quality - M & S.
    • Sometimes a shed or other installation has to have written approval from the freeholder i.e. Southwark, Southwark has (or did have) a Leaseholder Association.   Could also come under Anti Social Behaviour Unit.
    • Love Dulwich is great but has a large step in front. We have only been weekdays at Lunch time. Maria's next to Picture House is disabled friendly. Also can reserve table in advance. We did a Sunday lunch catch up with family - there were 8 of us.
    • Hi, Thinking about  going with some friends and was just wondering if folk might like to report back please. Most importantly sound level when busy & is it disabled friendly.  Thinking on a Sunday lunchtime but don’t want a busy busy environment or loud chatter - a couple of friends could not cope. Time can be flexible, if that helps - say 2 ish to avoid above.. Thanks…      
Home
Events
Sign In

Sign In



Or sign in with one of these services

Search
×
    Search In
×
×
  • Create New...