Nanny share - idea of costs

[LI]

I'm interested in the idea of a nanny share for 2 one year olds. However before I go any further I'd really like to get an idea of approximate costs in this area (East Dulwich / Herne Hill / West Dulwich) so I know whether it is really an option for me. Is anybody willing to reveal what it would cost per week?

[Mellors]

As fas as I know its c. ?4.50/?5 per hour per family (i.e. ?9/10 per hour for the nanny), plus you should pay Tax & NI on top of that (although some sort out their own). A nanny working just for one family should charge slighty less,say, ?8 or ?9 an hour.

[emc]

It does depend a bit on the nanny's tax code etc but as a rough estimate, a nanny's net hourly rate if looking after children of two families will be around ?10-11.50 (if well qualified nannies,good references etc) per hour and then you have to pay their tax and NI on top so it works out it works out to about ?7-?7.50 an hour per family (that's when split between just two families)

[littleEDfamily]

Remember to factor in the cost of Ofsted registration and nanny payroll services, the latter are about ?10 a month and I think Ofsted is ?100, but not sure how often that crops up (I think yearly - although you could write into the contract that they are responsible for their own registration costs). Also think about the initial outlay for double buggies or any other equipment you need.

For sole charge of one child at about ?7.50 (net) an hour, for a 10 hour day, I would bank on it costing you around ?100 all in per day. Yikes. If you're sharing, you can get that down to ?60 pretty easily, maybe as low as ?55. I think it's a good idea to set expectations regarding salary reviews at the start, as some nannies will expect annual raises as a matter of course (and if your own salary is likely to be static, it may not be realistic).

[KBN]

So would you think it realistic to pay between ?60 and ?70 a day each family, inclusive of tax and NI - i.e. ?120 to ?140 gross for the nanny?

I know one pays for the nanny's holiday too - how many days do nannies usually require?

[littleEDfamily]

Yes, I think that's realistic. You should be able to get a decent nanny for that, as long as you're not expecting mega-long days (I think the norm is around 10 hours).

Re: holidays, most nannies will get the statutory minimum (I think 22 days), which can include Bank Holidays. You'll need to arrange a plan for deciding when holidays can be taken, as it's a bit of a juggling act in my experience to make sure the nanny and both families get to take at least some of their holidays at a time that suits them.

You need to think about sick pay as well - your payroll service provider can advise you on that. If you end up having to take holiday or unpaid leave when your childcare falls through, it can be a big 'hidden cost'.

[busymum]

Hi

I've just started interviewing for a nanny position and I'm finding that the more experienced ones seem to charge ?10 ph but they are registered as self employed and do their own tax and N.I. This is for 2 sibblings, so it could be more expensive for a nanny share, 2 families (although ?14 ph above seems alot!) But does anyone know if I still have to pay sick pay to a self employed nanny? I guess this can be negotiated? I didn't have to pay my self employed childminder any sick pay when she or her child were ill, but some childminders insist on it. I would like to limit it to a maximum number of days sick pay per year. Anyone have any thoughts?

[Smiler]

The statutory minimum is now 28 days, but this can include 8 bank holidays.

Nannys are not self-employed, even if they set up a limited company etc. For tax and employment rights purposes they meet the legal definition of employees, so families are the employer and responsible for statutory sick pay, maternity pay etc.

[LI]

If a nanny really was self-employed (seems very unlikely if working permanently for one family but if HMRC have given them that status then it is possible) then you wouldn't have to pay for either holiday or sick time.