October 2nd, 2014
If the nanny is paid weekly, simply divide their gross weekly wage by the number of hours they work.
If the nanny is paid monthly then multiply their gross monthly salary by 12 to get their annual salary, then divide by 52 to get their weekly salary. You can then divide this weekly salary by the number of hours worked per week to see if the National Minimum Wage is applied.
The National Minimum Wage does not usually apply for live in nannies.
Click here for more information about NMW
January 29th, 2014
When a nanny comes to work for you, looking after your house and your children, she is working for you in her capacity as an employee and you will be her employer. In the vast majority of cases a nanny cannot be self-employed and therefore as an employer you have the same obligations as a commercial employer (please refer to http://www.parentalchoice.co.uk/self-employment-and-nannies/ for more details). These responsibilities are to provide good working conditions, a reasonable salary, an employment contract and make tax and national insurance arrangements to cover yourself and your nanny. In addition the law requires you to:
• Register as an employer
• Set up and operate a PAYE (Pay As You Earn) scheme on your nanny’s behalf
• Keep tax records on their behalf
• Provide your nanny with regular pay slips
• Provide them with an employment contract
• Pay regular income tax and National Insurance Contributions
• Pay employer’s National Insurance Contributions
• File an employer’s annual tax return
• Have employer’s liability insurance in place.
This all sounds very onerous but in fact if you get a payroll agency to do the registration, payslips and tax for you (e.g. Parental Choice www.parentalchoice.co.uk) and talk to a childcare insurer for the insurance, all of these can be easily taken care of, leaving the employment contract.
Sarah-Jane Butler, founder of Parental Choice, the essential “one-stop shop” to help you combine career with childcare. For more information on your career and childcare options, see the Parental Choice website: www.parentalchoice.co.uk.
January 16th, 2014
CHANGES IN RATES FOR 2014-2015
The Department for Work and Pensions have provided us with the Statutory Payment rates that will apply from next tax year (together with a lot of other useful information):
From 6 April 2014:
• Anyone employing a nanny will have to register as an employer if they are paying over £111 a week.
• The personal allowance is going up to £10,000 meaning that if your nanny is on a gross salary she will receive an extra £560 a year with no further cost to you.
• The NIC threshold has increased to £153 meaning an employer will only start paying national insurance if their nanny earns above £153 a week.
CHANGES TO SMP AND SSP
Statutory Maternity Pay is increasing from £136.78 per week to £138.18. The first 6 weeks of statutory maternity leave will be paid at 90% of average weekly earnings for the previous two months, whilst the following 33 weeks will be paid at the lower of 90% of weekly earnings or SMP. Please note that under the Small Employer’s Relief scheme, if your nanny is entitled to SMP according to statutory regulations, then you will be entitled to recover 100% of any SMP paid plus 3% NI compensation. Most domestic employers will fall into this category.
Statutory Sick Pay is increasing from £86.70 to £87.55 per week and will be payable where an employee who earns at least £111 per week is absent for at least 4 consecutive working days. However from April 2014, employers will not be able to reclaim SSP from HMRC. This means that any statutory sick pay is now the employer’s responsibility.
If an employee has another period of sickness absence within 8 weeks of the previous absence, SSP is usually payable from the 1st day of sickness rather than the 4th, provided that the employee has been sick for at least 4 consecutive working days.
EMPLOYER’S NATIONAL INSURANCE
Many of you will have heard that from April 2014, all businesses would be exempt from the first £2,000 of Employer NI contributions each year. Unfortunately this exemption, included within the National Insurance Contributions Bill specifically excludes employers of nannies and other domestic staff from claiming this benefit.
UNUSED PAYROLL SCHEMES
For those of you that have registered as an employer but are not currently employing a nanny, please be aware that from October 2013, if there has been no activity on the scheme after 120 days it will be automatically reviewed to see if it can be cancelled.
A scheme will be considered as having no activity on it where
• you have made no submissions using PAYE in Real Time
• you have not made any payments to HMRC
• you are not an annual payer
• there is no evidence that you want to claim CIS Deductions Suffered
• you have not received an advance from HMRC
• you have not had any periods of Construction Industry liability
• there is no evidence that you have had any employees
• there is no evidence that Class 1A NIC is due.
Where none of these conditions apply your employer scheme will be cancelled and a letter issued to you to advise you of the action taken. Once the scheme has been cancelled you will not be able to submit any PAYE submissions. If your scheme should not have been cancelled the letter covers who you should contact in HMRC to request that your scheme is reopened. However, our payroll department will continue to send monthly returns to HMRC if you are without a nanny, but want to keep the payroll open because you intend coming back into the employer role.
October 2nd, 2013
New National Minimum wage rates:
September 19th, 2013
Specialised Public Liability Insurance for Nannies in the United KingdomCover, provided against any third party property damage or injury where you as the nanny have been deemed to be negligent.
Accidents can happen and children get bumps and bruises, but what if something happens to a child in your care and the parents decide to take legal action?
Would you be able to afford the legal costs and compensation costs?
Gallagher Heath Insurance Services have tailored this insurance policy to match the cover that a nanny requires – at a competitive cost.
£1,000,000 limit indemnity for an annual fee of £47.40
* Includes a £5.00 administration fee and Insurance Premium tax which is currently charged at 6%.
Applying is easy:
Its easy to apply – email email@example.com. Payment can be made by cheque or debit/credit card.
Have a query?
Please contact Gallagher Heath on 0845 0738495
or Email firstname.lastname@example.org
Gallagher Heath Insurance Services is a trading name of Heath Lambert Limited, which is authorised and regulated by the Financial Conduct Authority. Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 1199129. This insurance is effected on behalf of International Insurance Company of Hannover Limited. Registered in England. Registered No 1453123. Registered Office: 10 Fenchurch Street, London, EC3M 3BE and is authorised and regulated by the Financial Conduct Authority No 202640.
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Coralis Childcare Agency Ltd
55 Josephine Court