What's the going rate for nanny share?

[lala24]

Can anyone advise on the going rate for a nanny share for 2 babies both around 12 months? Nanny would be based in East dulwich, 4 days a week between 7.30am and 6pm.

Many thanks.

[tortor]

Hi

We paid a nanny with significant experience ?13.50 per hour NET, which equates to about ?17 GROSS. The advice is to do the pay arrangements net, for tax purposes. You also need to add in National Insurance payments.

We did a nanny share for 3 days a week, and 1 single care day (which cost about ?11 per hour net) all for 11 hour days. It worked out about ?2,000 a month for us. An expensive option but we had a fantastic experience.

Good luck!

[lala24]

Thanks so much, very useful advice :-)

[Digbina]

It might be a typo on tortor's part but I would strongly advise to make the pay arrangements GROSS like any other employee. Nannies are not in some special category of employee. Offering a net rate of pay leaves you liable for an unknown amount of tax liability depending on whether the nanny has a second job, a student loan, other tax issues etc. Why take that on? Speak to reputable tax/paye agency who can advise.

[devsdev]

Digbina, unfortunately it's only recently that people have started moving to nanny paye being agreed gross. In reality when you interview nannies they are looking at a net rate because that's what they've had previously. I absolutely agree that you shouldn't be exposed to additional tax liabilities, which is why you look at a net rate and then gross that up with Nannytax/Nannypaye and agree the gross rate in the contract. This would exclude things like student loan, not having any tax free allowance left etc so you're hopefully not out of pocket.

Also, I'd have to argue that nannies _are_ in a special category of employee - they take care of your children when you can't. And they are in your home. Our nanny is fantastic and I would do whatever is reasonable to ensure she is happy with her working conditions!

[Digbina]

Well, I feel similarly about my nanny but I also am aware that my feelings make no difference to my legal obligations or her employment status! It seems convoluted to me to agree a net rate and then go the additional step of grossing it up. Just offer the job at the gross rate.

[lala24]

Thanks everyone, all good advice and very much appreciated.

[tortor]

Sorry! Digbina is absolutely right- a typo... Agree the pay agreements in GROSS terms. We verbally agreed a net rate with the nanny, established the tax liabilities then got the PAYE people to work out the gross pay figure. Bit of a faff but made all parties happy!