Tax and Insurance and the total cost of employing a nanny / housekeeper (Tax year 2018/2019)
You should be aware that when you recruit a Nanny you become an employer and must register with the Inland Revenue, immediately. We can refer you to an organisation that will do this for you and provide a payroll service, for an annual fee. To see the total cost of employing a nanny please see below.
The National Minimum wage applies to nannies as any other occupation but it does not apply to employees aged under 18 or to nannies living as part of the family household, where there is no separately metered accommodation. NOTE - Nanny shares and Nanny with two positions may have a greater tax liability.
As in most occupations the best nannies command rates higher than the minimum legal wage. The current market rate for an experienced full time nanny is between £10 and £16 per hour gross. We are able to provide advice and guidance on how to arrange payment for your nanny.
See table below for a guideline to salary expectations. You are advised to write contracts to reflect gross pay.
|Live in Nanny (plus bills and food)||£400 - £650 gross per week|
|Nanny Rate||£10 - £16 per hour gross|
|Part time nanny||£10 - £16 gross per hour|
|Before and After School care (part time)||£10 to £16 gross per hour|
|House Keeper – full time live out||£12 - £16 gross per hour|
|Part time house keeper||from £12 gross per hour|
|Baby sitter||from £11 total per hour|
|Temporary Nanny||£12 per hour self-employed short term contract|
|Maternity Nanny **||from £13.00 total per hour. Multiple rates by arrangement with Maternity Nanny.|
**Note: Maternity Nannies commit to a firm commencement date, in the event of your baby being late, 50% of each week’s salary is chargeable by the Maternity Nanny until commencement.
Figures are supplied by PAYE For Nannies for illustrative purposes only:
The above figures are based on an employee with a standard tax code, and who is only working for one employer. If the employee is keeping another job, the above figures will not apply. We recommend that a nanny's pay should be agreed in GROSS terms.
The figures in the table are approximate as for clarity they are rounded to only show pounds and are provided only as a general guide. PAYE for Nannies Ltd advises clients to check all figures and accepts no liability for any errors or inaccuracy.
This is payable by all employers, broadly, if the employee becomes pregnant whilst working for the employer and provided they are paid (from April 2018) at least £112 per week. SMP is taxable and is paid at 90% of the normal GROSS wage for the first six weeks of maternity leave and then at a flat rate of £145.18 (or 90% of the normal gross wage, if lower) for a further 33 weeks. In most cases, the employer can reclaim all of the SMP paid from HM Revenue and Customs (HMRC). A further period of unpaid leave may be taken up to 12 months.
This is payable as a minimum by all employers if the employee is sick for at least 4 working days in a row. Rate is £92.05 per week. SSP is payable for up to 28 weeks of illness.
ALL employers will need to ensure they comply with current rules on pensions. All nannies who are 22 or older, earning more than £10,000 gross must be enrolled in a pension scheme and nannies earning between £6032 and £10,000 must be enrolled in a scheme if they request it. The employer must contribute to this. Penalties for non-compliance are £400 initially, then £50 per day. PAYE for Nannies can advise further.
The information above is provided only as a general guide by PAYE for Nannies Ltd who advises clients to check all information and accepts no liability for any errors or inaccuracy.
Our aim is to ensure that childcare candidates provided by Nanny Plus have been vetted to the highest possible standards. In order to achieve this, as a childcare agency we guarantee that each candidate will have undergone a thorough personal and biographical interview, by an experienced interviewer. Find out more...
We are often asked 'What is the right solution for me?' At Nanny Plus, firstly we want to understand your particular circumstances, we listen to your needs, we ask about your lifestyle and your timescales and your budget. With excellent knowledge of the area and local childcare facilities; we are able to work with you and advise on all aspects of childcare. Find out more...