Salaries
Assessing the cost of childcare.
The salaries of nannies and child-carers depend mainly upon their qualifications and experience, but location also plays a part – with London-based nannies tending to command the highest salaries. Plus, live-in nannies generally expect to receive a lower salary than live-out nannies because they benefit from free board and lodging.
How should I calculate my nanny’s salary?
Normally, salaries are negotiated on a NETT basis: that is, you agree with your nanny a weekly figure they are happy with after any income tax or national insurance payable has been deducted. Please remember, though, before you agree a nett figure, you must calculate the GROSS cost to yourself, which will of course be greater.
Approximate average weekly nanny salary scales:
| NETT | GROSS | |
| Central London | £470 | £702 |
| Greater London and the South East | £370 | £538 |
| Other urban areas | £330 | £473 |
| Other rural areas | £320 | £456 |
Please note: all figures are based upon current HMR&C legislation and are only a guide.
How do I go about paying Tax and National Insurance?
As your nanny’s employer, you are responsible for accounting to HMR&C (Her Majesty’s Revenue and Customs) for this. But don’t fret - to help make payment of national insurance and income tax as easy as possible for you, HMR&C run The Simplified Deduction Scheme, designed for employers like you - with just the one employee.
You might, however, prefer to pass this responsibility on to one of the numerous organisations that have been established with the aim of relieving families of this task. You simply provide them with the details of what you are paying your nanny and they do the calculations for you. All you have to do is send off a quarterly cheque to HMR&C. At CLICK nannies, we’re happy to recommend Nannytax in this regard. Just click on the link and you’ll get straight through to their website.
HMC&R may also want to know whether any expenses or benefits have been paid to your nanny, because some are taxable – for example, separate accommodation. But, use of a car in working hours, or any courses you may send your child-carer on to enhance their skills, are not.
Please note: by agreeing to pay a salary on a nett basis you are potentially taking on the responsibility of paying any arrears of income tax or national insurance a nanny or child-carer may, for whatever reason, have incurred.
Are there any other costs involved?
If you expect your nanny to drive your children around, it may well have an effect upon your car insurance premium. Plus, you will need personal liability cover if you do not already have it included in your household insurance. This will also need to be valid outside of the UK should you plan to travel abroad with your nanny. Finally, you may want to consider personal insurance for your nanny or child-carer if they do not already have it. Whatever, CLICK nannies will be happy to suggest providers of all these types of insurance.
Be assured, at CLICK nannies we will always be on hand to assist you in resolving any issues that might arise in the course of taking on a suitable nanny.
