Payroll Advice

We use Nanny Pay whose consultant has over 25 years experience in the private and public sectors and is happy to give advice to Clients and nannies alike on a one-to-one basis.

We offer extended hours such that advice can be sought in the evenings.

The Nanny Pay subscription fee is £150 per annum.  Call 01883 330890 for an application form.

Service

• We take care of everything that as an employer you are legally obliged to do:
• Set up a PAYE scheme with HMRC.
• Keep a payroll record and provide payslips on your behalf.
• Pay Employee's income tax and National Insurance Contributions.
• Pay Employer's National Insurance Contributions.
• Provide an annual summary of all these deductions and payments.

This is also the case if:

• Your nanny earns less than £90 per week in your employment but more than £105 in total (e.g. if she has two part-time jobs)
• You use temporary employment for a week or longer
• You engage in any employment taking place in the UK - irrespective of the country of origin of the nanny or employer
• We specialise in effecting Nanny Share schemes where an efficient tax code splitting service is available at no extra cost.
• Throughout your subscription, all aspects of payroll are dealt with on your behalf, from all HRMC correspondence and regulations, to issues such as sick and maternity leave, P35's, P60's and P14's end of year returns.

Salary

Contractually you should agree a gross wage with your nanny; however practically you may talk about the net wage - which is the amount your nanny has in her hand at the end of the week. You can use our Net/Gross Calculator to compare the net wage and the gross cost of your nanny once tax and NI are affected. Remember you are obliged to pay employer's national insurance contributions on top of the gross wage.

Self-Employment

With few exceptions (maternity nurses and nannies in continuous temporary employment), nannies simply do not meet HMRC criteria for self-employment. If liability to pay tax is not declared to HMRC and it comes to light, it is you, the employer who will be pursued for payment, not your nanny.

Penalties

• Failure to register as an employer if you are paying your nanny above the weekly threshold is an offence.
• Failure to file employer's annual returns by the HMRC deadline carries a penalty of £100 per month that it is late.
• Failure to pay all tax and NI liabilities by the HMRC deadline, results in interest being charged on the amount outstanding.