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

    • Eh? That wasn't "my quote"! If you look at your post above,it is clearly a quote by Rockets! None of us have any  idea what a Corbyn led government during Covid would have been like. But do you seriously think it would have been worse than Johnson's self-serving performance? What you say about the swing of seats away from Labour in 2019 is true. But you have missed my point completely. The fact that Labour under Corbyn got more than ten million votes does not mean that Corbyn was "unelectable", does it? The present electoral system is bonkers, which is why a change is apparently on the cards. Anyway, it is pointless discussing this, because we are going round in circles. As for McCluskey, whatever the truth of that report, I can't see what it has to do with Corbyn?
    • Exactly what I said, that Corbyn's group of univeristy politics far-left back benchers would have been a disaster during Covid if they had won the election. Here you go:  BBC News - Ex-union boss McCluskey took private jet flights arranged by building firm, report finds https://www.bbc.com/news/articles/cp3kgg55410o The 2019 result was considered one of the worst in living memory for Labour, not only for big swing of seats away from them but because they lost a large number of the Red-wall seats- generational Labour seats. Why? Because as Alan Johnson put it so succinctly: "Corbyn couldn't lead the working class out of a paper bag"! https://youtu.be/JikhuJjM1VM?si=oHhP6rTq4hqvYyBC
    • Agreed and in the meantime its "joe public" who has to pay through higher prices. We're talking all over the shop from food to insurance and everything in between.  And to add insult to injury they "hurt " their own voters/supporters through the actions they have taken. Sadly it gets to a stage where you start thinking about leaving London and even exiting the UK for good, but where to go????? Sad times now and ahead for at least the next 4yrs, hence why Govt and Local Authorities need to cut spending on all but essential services.  An immediate saving, all managerial and executive salaries cannot exceed and frozen at £50K Do away with the Mayor of London, the GLA and all the hanging on organisations, plus do away with borough mayors and the teams that serve them. All added beauracracy that can be dispensed with and will save £££££'s  
    • The minimum wage hikes on top of the NICs increases have also caused vast swathes of unemployment.
Home
Events
Sign In

Sign In



Or sign in with one of these services

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