As temperatures plummet it understandable to want to retreat to the house where it’s warmer, but the bad weather shouldn’t be an excuse for children to swap playing outside for lounging in front of the TV.
That’s why we’ve put together some simple ideas to help keep your children active this winter:
Our partners at www.PayrollForNannies.co.uk provide payroll advice for parents and nannies and have provided this content. For more advice and support please get in touch with them.
In order to qualify for small employer relief, your liability for national insurance for the last complete tax year needs to be £45,000 or less.
An employer hiring a nanny will often meet the criteria of small employer relief.
This means that for statutory payments such as maternity pay, paternity pay, shared parental pay and adoption pay, you can reclaim 100% of these payments plus an additional 3% to help towards the cost of your employers NI.
It is important that this is noted in the payroll software, so if you ever have statutory payments, they will get deducted off your tax and national insurance liability each quarter.
Employers with a liability of more than £45,000.00 in last complete tax year can only claim back 92% of the above statutory payments.
Our partners at www.PayrollForNannies.co.uk provide payroll advice for parents and nannies and have provided this content. For more advice and support please get in touch with them.
Benefits in kind are benefits which both Employers and Employees can receive from their employment, which are not included in their salary.
As an employee, you pay tax on company benefits. The amount of tax you pay, depends on what kind of benefits you get and their value and it is the employer who deducts the amounts from the employee’s gross earnings. However, some company benefits, are tax free.
Most common benefits in Kind for nannies are listed below:
Private Car Mileage / Fuel Allowance
– Is not a taxable benefit if the employee is using the car during working hours. If they are using the car to get to and from work and outside their normal working hours, then this would be classed as a benefit in kind. If nanny is using their own car whilst they are at work, up to 0.45p per mile is tax free. Anything above this amount would be classed as a benefit and kind and will need to be reported to HMRC.
Private Medical Insurance
Subscriptions and Professional Fees
Living Accommodation
If you are providing living accommodation where the nanny has separate living quarters to the employer, this is classed as a benefit in kind, along with any bills and furniture you provide
Beneficial loans – Interest free or low interest
Flights – which do not include family holidays if you are taking the nanny with you
Any declarations for Benefits in Kind need to be submitted to HMRC via for P11(D) by 6th July each year. As an employer, there will be Class 1A National Insurance of 13.8% on the taxable benefit.
For more help and advice on this or any other payroll related matter please contact our recommended partners Payroll for Nannies https://www.payrollfornannies.co.uk/
A full time nanny is entitled to 28 days holiday (5.6 weeks) which includes bank holidays. Employers are entitled to choose all the dates of holiday nanny should take, but in practice nanny normally chooses 2 weeks while the employer chooses the other 2 weeks.
In your contract with nanny, make sure you ask for notice for nanny’s proposed holiday this will allow you to find alternative childcare. Some employers ask for at least 4 weeks notice.
We would recommend you keep note of holiday taken paid or unpaid, just in case nanny leaves part way through the year and has over taken on holiday. This way any unpaid or over paid holiday can be paid/deducted in her final payslip.
If nanny works more than 5 days a week, their holiday entitlement is capped at 28 days. It is not a problem if you agree more day’s holiday with nanny – this could be a condition of her working for over a stated amount of time.
If nanny is part time, she is entitled to annual leave (28 days including bank holidays), but pro-rated. So if nanny works 2 days a week, her holiday allowance is calculated:
2 days a week x 5.6 annual holiday allowance = 11.20 days holiday.
You must not round the holiday allowance down to 11, but can round it up to 11.5 days.
If nanny works different hours each week, you calculate her holiday pay by averaging her last 12 weeks worked hours then multiply it by 5.6, this then gives you her holiday entitlement in hours for the year and when she has a day’s holiday or was due to work on a public holiday, whatever hours she was scheduled to work that day are then deducted from her overall annual entitlement.
For more advice and support on this or any other payroll related matter please contact our recommended partners Payroll for Nannies https://www.payrollfornannies.co.uk/
Many medical experts are predicting a second wave of the COVID-19 Pandemic, which may arrive in the autumn as temperatures fall.
Although we do not want to try to predict the future, we examine a few possibilities and suggest some planning ideas.
Government Support resumes
Since the software and legislation is in place for both CJRS and SEISS, it would be relatively straightforward for the government to reactivate the schemes, perhaps with a smaller percentage of state support or in the case of CJRS, with an enhanced contribution from employers.
It may be argued that this would prove ruinously expensive for the country, but government borrowing can be scheduled over decades, as were war debts from WW1 and WW2. Of course, the government may raise National Insurance (NI) and tax rates to recoup some of this expenditure. There have even been rumours of a Net Wealth Tax being introduced.
The continuation of bank loans guaranteed by the government such as Business Bounce Back Loans and Coronavirus Business Interruption Loan Scheme could be another tool in the hands of the Treasury.
Government Support is not resumed
In this case there will be considerable issues for those businesses which are dependent on government support which may need to carefully consider their future.
As of 6th of April 2020, the government have introduced a new entitlement called Parental Bereavement Leave and Pay.
Under this leave/pay, parents who lose a child with a day-one employment right can take 2 weeks off work. These 2 weeks are at a statutory rate of £151.20 from April 2020.
Parental Bereavement pay is for adoptive parents, parents of a child born to surrogate, parents who are fostering to adopt and individuals caring for a child in their home, continuously for a period of 4 weeks ending with the date of death.
Parents will be able to take the leave as either a single block of 2 weeks, or as 2 separate blocks of one week each taken at different times across the first year after their child’s death. This means they can match their leave to the times they need it most, which could be in the early days or over the first anniversary.
From 6th April 2020 the rates for statutory payments will increase to the following.
SMP Statutory Maternity pay and SAP Statutory Adoption Pay are both increasing to £151.20 per week and 1st 6 weeks are still paid at either 90% of average earnings or £151.20 whichever is lower.
SPP Statutory Paternity Pay and ShPP Statutory Shared Parental Pay are both increasing to £151.20 per week or 90% of average earnings whichever is lower.
SSP Statutory Sick pay will increase to £95.85 per week and this only payable from the 4th consecutive working day off.
The standard tax code for tax year (20/21) from April 2020 is 1250L, this then means an employee can earn £12,500.00 per annum before they pay any tax. This figure is then spread over the relevant pay periods in the tax year (52 if weekly and 12 if monthly) this then gives the tax free allowance for each pay period.
This can only be used by one employer, and if nanny gets a second job Basic Rate tax must be deducted. Failure to deduct Basic Rate tax will cause an under payment of tax to nanny. Nanny will then either get a demand of unpaid taxes or her tax code will be reduced.
The rates for this tax year are:
| Weekly Gross Earnings | Percentage Tax Paid |
| Up to £240 | 0% |
| Between £240 and £961 | 20% |
| Between £961 and £3125 | 40% |
| Above £3125 | 45% |
Nanny’s tax code may be increased if she is married and her husband does not use all of his tax free allowance (£12,500.00).
We appreciate nannies have a number of questions and are understandably feeling extremely
anxious.
At BAPN we don’t pretend to have all the answers, in fact no one currently has – not even our
government or medical experts worldwide. The Coronavirus is a new virus. However, based on the
more common queries we’re receiving, we’d like to offer the following information and hope it
proves useful:
What’s happening?
The government and its health advisers are telling us that large numbers of the country’s workforce
are likely to be absent at any one time as the Coronavirus takes hold. We appreciate this is worrying
but bear in mind there will be varying degrees of symptoms, some no worse than the usual winter
flu.
Of course the impact on nannies won’t just be if they become ill or have to self-isolate. A further
unknown is what will happen in the event of schools and nursery closures? Just as their employer is
likely to need them more, nannies with their own children could find it impossible to go to work.
Likewise, those who have partners or dependents who become ill may also need to stay home…. and
so it goes on. The situation as it develops will have a major impact on all of us.
The best advice we can offer right now is that by working together and having open dialogue,
nannies and their employers can avoid unnecessary panic. Employers MUST adhere to government
guidance and if their nanny has to self-isolate so be it. Infected nannies or those who could
potentially be at risk, must self-isolate and stay at home and not show up for work as a result of
either misplaced loyalty or employer pressure. This is no different for a live-in nanny, the same
applies although it does come with additional challenges when the nanny’s home is that of the
employer.
Your Employment
Many employers in various industries are already considering allowing their workforce, where
possible, to work from home during this current crisis. However, the majority of nannies are simply
not able to work from home. That said, government guidance is still relevant and the requirement
on employers to treat their nanny fairly still applies. Nannies must not be put at risk simply
because of the nature of their employment.
Self-isolation
The government is currently recommending that anyone who has recently visited certain “high risk”
countries or regions, or has had recent contact with someone who has, should isolate themselves.
For updated information relating to countries or regions considered “high risk” please visit https://publichealthmatters.blog.gov.uk/2020/02/20/what-is-self-isolati…
We understand the list of high-risk areas is being updated on a daily basis.
The government has also set out guidance on measures to take while in isolation: https://www.gov.uk/government/publications/wuhan-novel-coronavirus-self…
You should familiarise yourself of these measures regardless of whether you are feeling ill or not.
If you know you have been in contact with someone who has a confirmed case of Coronavirus, or if
you have symptoms and, having contacted the NHS 111 line it was recommended you self-isolate,
you should follow instructions to the letter.
To get help from NHS 111, you can:
• visit 111.nhs.uk (for people aged 5 and over only)
• call 111
• NHS 111 is available 24 hours a day, 7 days a week.
A period of suspension
Should an employer have concerns about an employee, in particular, where it is known or suspected
that they had contact with someone known to have Coronavirus, they might decide to suspend as a
precautionary measure. This is acceptable and must be on full pay unless the employee’s
employment contract allows for suspension without pay. This would be most unusual.
Sickness absence
It’s likely that this might become tricky for employers and employees on the basis that it will not only
be those who are ill that are off work but also those looking after family members who are ill or
those with children in the event of schools and nurseries being closed.
Please note: Employers are not obliged to pay their employee if s/he is not sick but cannot come to
work because they have been advised to self-isolate. Your employer can choose to treat this period
as sick leave and pay following their usual sick pay procedures or, offer you the option of taking
annual leave or unpaid leave.
Statutory Sick pay (SSP)
Eligibility for SSP can seem complicated at the best of times.
To qualify for Statutory Sick Pay (SSP) you must:
• be classed as an employee
• have been ill for at least 4 days in a row (this can include non-working days), however the
government has temporarily changed the rules on this meaning payment will come in from
day 1 for COVID-19 symptoms or self-isolation.
• earn an average of at least £118 per week
• Tell your employer you’re sick before their deadline – or within 7 days if they do not have
one
The SSP payment is currently £94.25 per week
If you do not qualify for SSP, you may be able to apply for Universal Credit or Employment and
Support Allowance, and the government has made temporary changes in this regard. See their
website for the most up-to-date information.
Occupational sick pay
Many nannies, not all, will receive sick pay as set out in their employment contracts. All nannies
should dig out a copy of their current contract and be familiar with its terms, in particular, what
happens when the nanny is ill / unable to work.
It is most unlikely that your contract will include self-isolation, time off to care for infected family
members but nonetheless, be familiar with what is included.
Nannies are urged to speak with their employers about “What If”. What will happen in cases of
illness or isolation? Have this conversation as soon as possible and agree a strategy before anything
happens. We’d advise an inclusion is added to the employment contract so that expectations are
met and understood.
Sick Notes / Fit Notes Certificates of Sickness Absence
An employer will normally require you to produce a doctor’s certificate, or ‘fit note’, after 7 days
absence. Coronavirus symptoms are likely to last more than 7 days, and if you are unwell or in
isolation, it will be difficult for you to obtain a doctors’ certificate. In these circumstances, the
government has ruled that an e-mail confirmation of diagnoses will be enough for Coronavirus
COVID-19 and those in self-isolation. You can access more information online via NHS 111.
What if I don’t / can’t go to work through the current crisis?
There is no legal right for employees to be paid under these circumstances or if a school / nursery
closes and an employee is required to care for a dependent. Your employer could offer you a period
of paid annual leave or unpaid leave or allow you to work from home where this is feasible.
BAPN is urging all nannies to check their current employment contract and to have a conversation
with their employer now, before such a problem arises.
Lay Off
Employees who are willing and able to work but are not provided with work by their employer can
be placed on “lay off”.
Lay off must be with full pay unless there is a provision within the contract of employment for lay off
without pay. If there is no contractual provision, employers can attempt to agree with employees a
period of unpaid lay off. BAPN is aware that many employment contracts provided by nanny
agencies and some nanny payroll providers allow for lay off and therefore you should check your
contract closely.
Providing information, advice and guidance
There is a duty on all employers to keep their employees informed with up-to-date, reliable
information from sources like the Department for Health and Public Health England and nanny
employers are no different. BAPN is aware of some really dubious sources of misinformation, in
particular, that found on Facebook! This is far too serious a subject. Only seek information from
reliable sources only. Such as:
https://www.nhs.uk/conditions/coronavirus-covid-19/
https://www.who.int/docs/default-source/coronaviruse/getting-workplace-ready-for-covid-19.pdf
https://www.hse.gov.uk/news/coronavirus.htm
Did you know that 20% of UK parents spend no time at all reading with their children? Or that just 50% of parents with young children read for just 1 hour each week?
Not only does reading to your children help to improve their academic performance, but more importantly it strengthens your bond, improves their imagination, helps children learn to read, teaches them about the world around them, and provides important morals to help make your child a nicer person.
