Average Salaries for Nannies
Average costs vary from Nanny to Nanny and even from area to area.This will also be dependant on the experience of the nanny and how much they have been paid from a previous employer.
Costs start from £7.00 per hour Gross and can rise up to £14.00 gross for Greater London areas. For central London this cost tends to commence at £8.00 gross per hour. So for example someone new to working as a Nanny we are looking at between £7.00- £8.00 per hour .
|Whether you’re employing someone for the first time or you have had a nanny in the past, it is essential that you know from the outset what the costs involved are going to be. One of the most important things you can do in order to avoid unexpected costs at a later date is to agree a gross salary with your nanny. This will not only protect your outgoings in terms of your nanny’s actual salary, but if you provide them with any benefits in kind, such as the use of a car, you won’t be surprised in the future with a tax bill for that.Employing a nanny doesn’t have to be expensive, and it certainly isn’t just for the wealthy. Families often find that the convenience of a Nanny outways the costs and where there are two or more children the costs are equal if not less than other forms of childcare. The Nanny comes to your home as well!|
The system of childcare vouchers is changing and further details will become available. A payroll company will be able to advise you on this too
Why agree a Gross:
|Net wage agreements – an example|
By agreeing a net wage with the nanny the employer is agreeing to pay all tax, whatever it may be. In other words a nanny on a net wage agreement will always take home the same amount. This may be good for the nanny; however, for the employer it could prove to be a costly decision and many employers find they can add up to 39% on top of the net salary. This is often too much, and they may realise they can’t afford to keep her.
If the nanny is not on a standard tax code or there is unpaid or underpaid tax from previous employment, or perhaps a student loan, it could become even more expensive.
Getting help in calculating the costs:
For further help an advice please contact a payroll company.
01604 743346 or www.way2paye.co.uk ( a calulator is available to work out the costs)
We hope you find the information helpful