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The following advice is based on my experiences placing over 38 years hundreds of Daily Nannies with hundreds of families.

 

The below information clarifies the steps a Parent will need to take to create a good and long-term working relationship.

 

As in any other career, a Nanny will seek a fair Gross per hour rate related to the number of years they have worked as a Nanny or in Childcare and job income security with their full Gross Nanny payments by you to HMRC declared.

What is a Nanny:

 

  • A Nanny works set hours in their Employer's home.

  • A Nanny sole charge cares for their Baby or/and any Child under school age.

  • A Nanny cannot be self-employed as HMRC (government) legally deems a Nanny the Employee of a Parent.

  • Parents choose to pay more to employ a Nanny because they do not want their Child all day out of their home with a Registered Childminder or in Nursery group care or all day out with other Nannies. 

 

Most Nannies:

 

  • Choose Childcare as their 1st choice career.

  • Complete a minimum of a one-year Childcare level 1 - 5 training whilst working in a Day Nursery.

  • Seek 30 - 50 hours every week between the hours of 7 am -to 7 pm.

  • Seek 8 - 10 hours a day Monday to Friday and offer occasional flexibility.

  • Seek a minimum 1-year contract and prefer to stay with a family for an average of 3 – 5 years.

  • To achieve a 4 or 5-day week many will work a 2 and 3-day week on different days for two families.​

 

A Nanny can be great family support and a cost-effective and convenient choice:

  • If you have more than one Child.

  • There are older sibling (s) to be taken, collected from, and cared for during school holidays.

  • A Child is sick Childcare as usual continues.

  • Parents increasingly may work part or all week from home and we know which Nannies are comfortable with this.

What does a Nanny generally earn:

  • Non - Experienced Nannies - in their first year working as a Nanny £11 up to £13 per hour gross.​​

  • Experienced Nannies - from £13 up to £17 per hour Gross with the highest rates fairest paid to those with 10 - 30 years of Nanny experience.

 

A Nanny is expected to:

 

  • Be reliable, punctual, honest and have good initiative to ensure the safety and happiness of each Child in and out of their home.

  • Set Child (ren) a reasonable example in their own personal grooming, hygiene, and spoken English.

  • Daily plan in the Employers own home varied fun and age-appropriate learning and creative activities for the Child (ren) that include practicing ABC/ spelling, numbers, reading, and writing to prepare for school.

Duties to a reasonable standard a Parent can expect of a Nanny:

 

  • Daily - prepare, cook, and introduce age-appropriate healthy but simple meals, snacks, drinks and wash up.

  • Weekly - Children’s bedroom tidy, dust, bed sheet change, and vacuum

  • As needed clean baby equipment, toys, highchair, bottle sterilizer, and mud on buggy, boots, and shoes.

  • Iron when Children are not in the room every other day a few Children's clothes and school uniforms.

  • Vacuum as the need arises the areas including the kitchen the Nanny is playing with a Child (ren).

  • Bath a Child then tidy up the bathroom.

  • In the last 30 minutes do an end-of-day toy and tidy up with the Child then sit to enjoy a quiet time colour or read story so the Child (ren) is calm when Parents arrive home.

Top reasons a Nanny gives a Nanny Employer notice:

 

  • A Childcare Qualified Nanny is not a mother's help and if asked to be the family housekeeper/cleaner/iron adult clothes or Parent cook.

  • When Children start full-time school as missing their company.

  • If the Employer regularly arrives home after time contracted and paid to, especially without an apology.

 

Probationary for a permanent Nanny is usually for 4 – 6 weeks:

  • The Nanny should be paid weekly and after monthly.

  • To reduce misunderstandings have an end-of-week discussion to resolve minor points. Allow for different opinions without taking offense and for the Employer if feel need to ask for a routine to be quickly changed or for Child-related housekeeping duty improved.

  • Inside a door display all year a 1-page sheet of your mobile number (s), doctor, family, and friend emergency telephone number.

  • Meeting other Nannies - in the 3rd week most Parents are happy to discuss an every other day morning or afternoon couple of hours meet up with other Nannies at a suitable Child-friendly place i.e. park and with a Nanny supervised game or craft activity IF are happy in probationary a new Nanny has followed the Parent chosen local outings that usually involve taking the Child (ren) to a playgroup, library, museum, park, music group, or swimming.

  • A large diary is useful to write weekly notes to keep each other informed of appointments, ill Child's medication dosage with Parent permission to give or health/diet change or to be done asap odd Child-related housekeeping duty. A Nanny can also suggest new Children’s recipes or other local outings and weekly staple receipts from the petty cash allowance.

The costs to employ a Nanny:

It is essential both the Employee (Nanny) and Employer (Parent) are realistic and fair in their Gross to Net per hour rate expectation to earn or pay as this is what defines whom we can introduce for interview.

To help interview discussion with each Childcarer we have discussed an approximate gross and minimum net per hour rate that they seek and state in their CV Report. Childcarers need to stop just speaking to Parents only of the `take-home (Net)` rate they aim for as that causes confusion.

As only the Gross per hour rate is relevant to a potential Employer to ensure with other additional costs they are keeping within their monthly Gross budget.

We notice years experienced Nannies do so as they worry they are not agreeing to a current Net per-hour salary drop.

 

Ofsted Voluntary Register

 

Was not created for Nannies to charge Parents higher gross per-hour rates but to help the majority of Parents who struggle to pay for Childcare (Nanny, Nursery, or Registered Childminder) so they can work.  Other schemes a Parent may be eligible for are Universal Credit, 30 hours of free, tax-free Childcare, and their Employer may have a Salary Sacrifice Scheme.      

Little Masters and Misses are not Accountant qualified to give a Childcarer or Parent accurate or in-depth gross-to-net salary or final cost advice or be held liable or responsible for any discussion, contract or gross salary misunderstanding or agreement between an Employee (Nanny) or Employer (Parent) but have researched the following to offer some advice: 

 

  • A Nanny on accepting a job offer must provide a new Employer with their P45 and Personal Tax allowance code (most are on a standard tax code 1257L)

  • As their Employer, you will have to manage all HMRC PAYE Tax Payroll obligations that include setting up and deducting PAYE Tax and Employee National Insurance (NI) on the full agreed gross per hour monthly earnings.

  • A part or full-time whether Temporary or Permanent Nanny by law cannot suggest to an Employer (nor be asked) to be self-employed or have declared part of their Gross earnings.A Childcarer that does cannot claim to be honest if ask for or accept cash-in-hand payments.  Ironically not in the Nannies' interest most likely then they are being underpaid and future unable to future give full Gross figure earnings to their next Employer and mortgage/car application loans being unable to declare in full are affected.

  • Parents to legally keep within their monthly gross budget and declare their Employee's full gross earnings are wiser to consider a non or years-less experienced Nanny (and we have fantastic candidates) so at a later date fines, back taxes, and interest do not have a risk of occurring.

Most Parents find calculating Nanny PAYE Tax earnings a daunting and complex task and pay a monthly fee to a Nanny specialist company to do this on their behalf. Please before interviewing a Nanny contact HMRC - Paye and Payroll for Employers for advice or a few companies such as below:

www.nannytax.co.uk               or 020 3137 4401

www.nannypaye.co.uk            or 0845 660044

www.nannywageltd.co.uk       or 020 8642 5470

I outline some of the services we know such companies also provide:

 

  • A legally required written Contract of Employment, this is very important for both to refer to as ending a verbal agreement is far more complicated and upsetting for all parties. 

  • Help to the Employer tHMRC (HM Revenue & Customs) form register their Employee using the Nannies' right Tax Code and if eligible to work in the UK on a PAYE (Pay As You Earn) Scheme.

  • All year calculate and deduct PAYE Tax and Employee National Insurance (ENI) then advise the Employer on time what to pay HMRC.

  • Provide the Nanny with a monthly payslip and advise on the weekly, monthly, and annual Gross and Net salary that a Nanny will ask for.

  • Advice on varied individual Employer and Employee Tax circumstances and if you need to HMRC register them if you are their only Employer or paying less than £113 per week or employing a Temporary Nanny or on a PAYE tax allowance pro-rata split if a Nanny has a 2nd job (Employer) on different days.

  • Advice on Nanny shares - Parents are taking the sharing principle more seriously than ever and teaming up with a family they know, most Nannies are earning £10 per hour gross from each family on the same day (s) shared hours.

 

Other additional costs to allow for:

  • Pay a separate Employer National Insurance (ENI).

  • Pay for Employer Liability Insurance.

  • Pay a petrol and car wear allowance if the Nanny is asked to use their own car for work.

  • Weekly cash kitty to buy craft activity items, occasional treats, an emergency, or agreed with the Parent (Employer) local low-cost outing.​​

  • Statutory Sick Pay (SSP) (about £100 per week) if given a doctor's certificate after the 4th day of sickness. The first, 3 in a row sick days are 100% unpaid (self - certification) and an Employer is under no legal obligation to pay although the Nanny can ask to be paid using if available annual leave.

  • Statutory Maternity Leave (SMP) - the Employer claims back from HMRC. The Nanny must be paid for up to 52 weeks and has the right to return to work but only on the previously signed contract terms. Working as a Nanny is a unique occupation so most ask to return bringing their own Child in which case an Employer is under no legal obligation to answer in that conversation or agree to do a new contract. Discussion must be had and some Employers agree to IF a lower gross per hour rate we suggest up to £13 per hour gross is agreed as the Nanny is not giving sole care to the Employer's Child or paying any childcare costs unlike the Employer so they can work.

  • Statutory Holiday Entitlement

  • Work Place Pension scheme - Nanny pays (5%) and Employer (3%).​​

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