Your Family’s Next Yaya Awaits

Any day to day costs the nanny will have, e.g. toddler group admission, light household shopping, swimming etc, should either be reimbursed or a kitty provided for the nanny to use.

You can use the Nannytax salary calculator to work out the net and gross payments, depending on the figures entered.  Another excellent calculator is the salary calculator.  When your accountant or nanny payroll service provider calculate the payroll for you, your employee and yourself will be sent a payroll slip, allowing you to see the cash payments you should make.  You can arrange to pay the salary weekly, fortnightly or monthly, depending on your contract and agreement with your nanny.

Under UK law, you become an employer when you take on a nanny and that brings with it certain responsibilities, one of which is to maintain payroll records for your nanny’s pay. In practice, this means submitting figures to HMRC every pay day and making deductions from pay.

Some nannies will suggest that they pay their own tax and National Insurance. Unfortunately, in 99% of cases this just isn’t an option, since HMRC clearly categorises this type of work as employment, not self-employment. HMRC places the responsibility firmly on you as an employer, regardless of your nanny’s circumstances elsewhere. By law, you must be registered as an employer and make quarterly tax and NI payments.

It’s a very important distinction; an employment situation attracts Employer’s National Insurance, whereas payments to a self-employed person don’t. This means that the taxman loses out considerably when employers treat employees as if they were self-employed. That’s just one of the reasons why HMRC rules are so very strict on the matter.

Very, very rarely a genuine case of self-employment may arise. For example, if a nanny were to specialise in settling newborns and therefore flit from job to job. If you think your case may be exceptional, you must use the employment status indicator tool on the HMRC website to determine the nanny’s true status. The tool is anonymous and provides a useful insight into the difference between employment and self-employment.

For example, a self-employed person will typically (but not always) be paid per job of work, whereas an employee will normally be paid an hourly rate or salary.

For a definitive answer, use HMRC’s Employment Status Indicator tool here: www.hmrc.gov.uk/calcs/esi.htm

You’re not required to include everything, but it’s a good idea to do so. Your nanny’s more likely to take her job seriously if you show that you do. A detailed contract will also help to prevent misunderstandings later on.

For example, if you say, “Feel free to use the car”, your nanny may understand this as, “You can use the car whenever you want”. You may actually mean, “If you need to, you can use the car to transport my child during your working hours”.

Without anything in writing, it would be unfair to caution your nanny for borrowing your car for personal use. It would just be a simple misunderstanding.

Committing these details to paper means you have clear evidence of what you’ve both agreed. This should make employment law easier to enforce if needs be. A good nanny will expect a written contract for similar reasons.

Try to add in the contract anything that’s specific to your nanny’s responsibilities as an employee, and your obligations as an employer. Consider including:

• your nanny’s duties
• basic ground rules, such as if your nanny can have friends over and your rules on smoking
• use of the telephone and other household appliances
• use of a family car
• date of salary review
• family holiday arrangements, such as if you expect your nanny to come with you
• length of probation period
• payment of petrol money and other expenses
• benefits, such as private health insurance or gym memberships
• sick leave entitlement and pay
• details of disciplinary procedures and any offences that would warrant immediate dismissal

As well as the standard conditions above, think about anything you feel should be obvious. This could be requirements necessary for her to do her job, such as a maintaining a full driving licence. Or it may be simple things such as not swearing around your child.

The more detailed your nanny’s contract is, the less chance there is for misunderstandings.

Yes. By law, you need to provide your nanny with a written statement of employment, usually referred to as a contract. This should ideally be done before she starts work, but definitely within two months of her start date.

A contract is a record of your nanny’s basic working arrangements. You should state the following ..

• your name and your nanny’s name
• your address and any other place of work, plus any relocation details
• accommodation details, if you employ a live-in nanny
• job title
• start date
• end date, where applicable
• salary
• probationary period and notice periods
• hours of work, including details of overtime and anti-social hours
• holiday entitlement
• pension arrangements
• agreements with union or association representatives
• what your nanny should do if she has a grievance or complaintIn Northern Ireland, you must also include details of your disciplinary policy.Bear in mind that, from a legal standpoint, a contract is formed as soon as your job offer is accepted. So it is a good idea to get something down in writing as soon as possible.Once you have put the contract together, both you and your nanny must sign it. Make two copies so you can each keep one.

You’ve been through the process of finding your perfect nanny- now you have to pay them! However, many people have queries about nanny payroll services.
Nanny payroll services can seem like a complicated thing to manage. Especially if this is the first time you are hiring a nanny. But this doesn’t have to be the case. Here at The House of Yaya we’ve written a handy guide for you to understand nanny payroll services better.
We really like Nannytax as a nanny payroll service.  They give good, independent advice and are budget-friendly too. If you have your own accountant, do enquire with them.  They may well have a simple and affordable nanny payroll service they can help you with.

As a rule of thumb, 8 weeks is about perfect. This allows a couple of weeks to find and interview candidates, and once an offer is made, allows the nanny to work out her notice period at her previous employment (usually 4/6 weeks). However, as soon as you know you need a nanny, it is wise to start the process. It’s not uncommon for parents to get in touch 6 months in advance.