Asked about why Nannies should not agree a NET. Here are some brief facts and please ask a payroll expert if you are unsure of any matters. Any nanny should go via a Payroll company to ensure your wages are correctly done Why ?
!. If you receive a net wage you will lose out from any increases in your personal tax free allownce and any changes that may occur in income tax
2. It makes it very difficult when applying for loans or mortgages as you will be asked to show wage slips and if this is in net only the rest will not be counted.
So I have also added some further answers to common questions from Waye2paye site so you can have a quick clance
Frequently Asked Questions
A. We provide a friendly, professional and accurate payroll service to all clients and come highly recommended by many Nanny Agencies.Q. How long will it take to set my payroll up?
A. On receipt of your joining forms and payment we will set up your account immediately. We usually turn things around in days, however in busy and holiday periods it may take a little longer.Q. Can you back date my nannies payroll as she started a few weeks ago?
A. YesQ. Can my nanny be self employed?
A. No nannies do not meet the HMRC criteria for the self employed; the only exception is maternity nurses.Q. Should I agree a gross or net salary?
A. It is always safe agree a gross salary. If you agree a net salary and your nanny owes tax for any reason or is in more than one employment you could be liable for extra costs. However we do calculate both net and gross salaries.Q. My company pays me in childcare vouchers can I used them to pay my nanny?
A. Yes if your nanny is registered under the Childcare Approval Scheme / Ofsted Childcare Register.
Q. My nanny is waiting for a P45 from her previous employer can I forward this to you later?
A. Yes, we can set your payroll up for you and then process payslips on receipt of the P45.
Q. If my nanny becomes pregnant do I have to pay her?
A. You may have to; however if yes we can calculate it for you claim it back from HMRC on your behalf. We will also claim 3% compensation from HMRC for you. Guidance is available in our member’s page of what to do if your nanny becomes pregnant.
Q. My nanny is off sick what do I have to pay?
A. Check your contract, many employers often pay their nanny for the first few days full pay, however if nothing is stated in the contract by law you will need to pay SSP. Let us know and we can calculate this for you.
Q. Why is my quarterly tax bill is higher than I expected?
A. Please check that you have included employer’s national insurance. Many parents forget this cost.
If you have any questions please do not hesitate to contact us.