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 £12.00 gross for  Greater London areas.  For central London this cost tends to commence at £8.00 gross per hour.  At Nanny Link we dont cost out your job we cost out the Nanny according to expereince.  So for example someone new to working as a Nanny we are looking at between £7.00- £8.00 per hour .To be clear on your total cost Nanny Link will speak gross at interview to the Nanny and pass this information onto the client. 

 

Employment costs:

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! 

 Consider:

Childcare vouchers      
Two types of financial support are available to parents employing an Ofsted registered nanny: working tax credits and employer-supported childcare vouchers. Many nanny employers will not benefit from the working tax credit as only households with a combined family income of £59,000 or less will qualify. However, it is expected that employer-supported childcare vouchers will become a popular way for parents to make a substantial saving, as this form of tax relief is available to all parents, regardless of income. To be able to use childcare vouchers you must be employed and your employer needs to set up a childcare voucher scheme.

Why agree a Gross:  (calculations supplied by Nanny tax)

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.

If you agree a net salary of £300 per week the nanny's gross salary would be approximately £381*, but in addition to nanny's tax and NI the employer must also pay employer's NI contribution, which in this instance would be approximately £35, bringing the total cost to £416. The difference between the agreed net pay and the real cost is 39%. For many employers that is 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.

*tax year 2010/2011

Getting help in calculating the costs:

Nanny LInk will be able to give you an idea of your total cost or you can contact our chosen payroll companies:

 1.. Waye2paye 

01604 743346 or www.way2paye.co.uk ( a calulator is available to work out the costs) 

2. Nanny Tax

0845 226 2203 or http://www.nannytax.co.uk/   (A calculator is availble on this site to work out the costs)

We hope you find the information helpful

With thanks to waye2paye and Nanny Tax for some of the details in this page