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Student Loans

Nanny may have an outstanding student loan when she starts working for you, this will either be noted on her P45 from previous employment, or HMRC will send a notice through to you or your payroll agent.

If nanny does not have a P45 from previous employment, she must complete a Starter Checklist. On the Starter Checklist it will ask if nanny has a student loan and what Plan she is on.

Student Loan deductions from nanny’s gross wage are payable to HMRC along with her tax, National insurance and employers National Insurance.  This will be paid to HMRC quarterly unless your PAYE exceeds £1,500 a month.

The thresholds for Student Loan deductions from April 2020 are:

  • Plan 1 – £19,390 annually (£1,615.83 a month or £372.88 a week)
  • Plan 2 – £26,575 annually (£2,214.58 a month or £511.05 a week)

Nanny’s pays 9% of her salary above these thresholds.

Plan 1 is for students that lived in England, Wales, Scotland and Northern Ireland and started their course before September 2012.

Plan 2 is for students that lived in England and Wales who started their course after September 2012.

 

Direct Payments

If your child is disabled, you may be entitled to get Direct Payments through your local authority.

The first step is to contact your local council and request an assessment. If the outcome is that the child is need of support, you will be given a personal budget.

The personal budget should cover employer’s national insurance, fees for payroll, pension costs and holiday pay.

If the child is already receiving support through the local council, but you would like to change to Direct Payment this is possible. It is up to you if you would like the council to take responsibility of the support or if you do (Direct Payments).

 

Points to consider before signing a contract with your employer

As a nanny your employer has a legal obligation to provide you with a contract of employment within 2 months of your date of starting, this should detail the terms and conditions of your employment and you should ensure that this includes at least some of the following:

Your name and job title

Working days and hours

Salary

Holiday entitlement

Duties and responsibilities

Statutory payments (SMP, SSP)

Workplace pensions

Notice period

Disciplinary and Grievance procedures

You should always check and read the contract fully and understand the details and anything you are unsure of or you believe is not included should then be followed up with the employer before you sign and date.

P11D Information

P11D Information
As it has reached the end of the tax year, it is your responsibility as an employer to declare
and prepare a P11d if required.
The deadline for filing the P11d is 6th of July.
These are some of the benefits that should be declared are:
Personal use of a car
Private car mileage/fuel allowance
Private Medical Insurance
Flights home if employing nanny from overseas
Living accommodation
Gym or other club membership
Subscriptions and professionals fees
Beneficial loans – interest free or low interest
Failure to declare them will result in a £100 penalty for each month it is late

4 Reasons Why You Should Hire a British Nanny

When you think of a British Nanny, the first thought to pop into your mind is quite possibly Mary Poppins, and whilst the average British nanny doesn’t boast flying umbrella’s or the ability to jump into paintings, they are practically perfect in every way.

The USA is seeing a steady rise in the popularity of the British nanny and there are several reasons for this. Here are our top reasons why you should hire a British nanny for your family:

Continue reading “4 Reasons Why You Should Hire a British Nanny”