employing a nanny – Nannyjob blog

What’s the difference between ‘gross pay’ and ‘net pay’?

Almost all employment industries in the UK discuss salaries in Gross terms; in the nanny industry, however, this hasn’t always been the case. Some nannies are still paid net salaries, but as an employer, if you agree to a Net salary with your nanny you may be in for a shock when faced with how much employing your nanny is really going to cost…

What is Net Pay?

Net Pay is the ‘Take Home Pay’ that your nanny receives after Tax, National Insurance, and Pension deductions (if applicable). This means you will be liable for paying your nanny’s tax, National Insurance, Pension contributions, as well as any student loans and/ or attachment of earnings order (such as previously unpaid council tax or child maintenance) against your employee on top of their salary. This is where many employers find themselves paying a lot more than they had anticipated.

What is Gross Pay?

Gross Pay includes your nanny’s ‘Take Home Pay’ and your nanny’s tax, National Insurance, and Pension Contributions (if applicable).

What are the benefits of a Gross salary?

For Nanny Employers:

A Gross salary will help you budget better because it includes tax, National Insurance, and pension contributions right from the start.
You won’t be responsible for any unpaid taxes or deductions from the nanny’s previous jobs.
It makes things clearer when dealing with HMRC, who usually only talk in Gross terms.

For Nannies:

A Gross salary provides job stability, since employers know the full cost upfront.
You can take advantage of your tax-free allowance, which usually increases each April.
You can compare your salary with other childcare jobs, since most industries use Gross terms.
It’s easier to show proof of income for things like mortgages or loans because lenders usually want to see Gross income.

So how much does employing a nanny really cost?

The Gross salary doesn’t cover all the costs of employing a nanny. What does cover everything is something called the ‘Total Cost of Employment’.

The Total Cost of Employment is the Gross Salary, plus the Employer’s National Insurance Contributions and the Employer’s Pension Contributions (if applicable).

In other words, a Gross salary accounts for your nanny’s tax, National Insurance, and Pension Contributions, but not your own employer contributions.

How can I work out my Total Cost of Employment?

If you’d like to work out your Total Cost of Employment, you can use Nannytax’s Calculator. Simply enter the Gross or Net salary figure and it will calculate your Total Cost of Employment and some additional helpful breakdowns – easy peasy!

This blog was written by Nannytax, with over 30 years of experience, they are the UK market leader in nanny payroll and nanny employment.

Discover more about Nannytax here.

Creating the Perfect Advertisement for a Nanny

Finding the right nanny for your family is an important decision, and creating an effective advertisement can significantly streamline the hiring process. Below are essential tips on how to craft the perfect ad to attract the ideal candidate.

1. Clear Job Title and Introduction

Start with a clear and straightforward job title that includes the term “nanny.” Your introduction should briefly outline what makes your family unique and what you are looking for in a nanny. This sets the tone and attracts the right applicants.

2. Detailed Job Description

Be specific about the duties and responsibilities you expect the nanny to handle, such as picking up children from school, preparing meals, helping with homework, or facilitating bedtime routines. Clarity prevents future misunderstandings.

3. Required Qualifications and Skills

List essential qualifications such as education level, years of experience, first aid training, or special certifications like early childhood education. Also, mention any specific skills that might be beneficial, such as fluency in a second language or experience with special needs children.

4. Personal Qualities

Describe the personal qualities that you value in a nanny, such as patience, creativity, reliability, and a love for children. This helps potential candidates self-assess their fit with your family’s needs.

5. Work Hours and Salary

Clearly state the working hours, expected start date, and any flexibility required. Be upfront about the salary range and any benefits, like paid vacation, which could make the position more attractive.

6. How to Apply

Provide a clear call to action. Tell candidates exactly how to apply, whether by sending a resume and a cover letter via email or filling out a form on a website. Mention any documents or information they should include, such as references or a background check.

7. Contact Information

Ensure that your contact information is correct and easy to find in the advertisement. This may include a phone number, email, or even a direct link to the application portal.

8. Engaging Conclusion

End your advertisement on a warm note, expressing your anticipation to find the right addition to your family. This personal touch can make your ad stand out.

Keeping Your Nanny Happy in 2023: Beyond the Festive Cheers

As we navigate through 2023, with its unique challenges and the festive season just around the corner, it’s an ideal time to reflect on how to maintain a joyful and productive relationship with your nanny. While grand gestures have their place, the true art of appreciation lies in the everyday acts of kindness and respect

Understanding RESPECT in the Nanny-Parent Relationship:

The acronym RESPECT stands for Rights, Earnings, Space, Professionalism, Expenses, Choices, and Time. These elements are foundational to a healthy working relationship. Particularly, being mindful of your nanny’s time – respecting their finish time is respecting their personal life. If you’re often late, consider adjusting and compensating for their extended hours.

Small Gestures, Big Impact:

Flexibility and Understanding: Life happens – a delayed train or a slow morning can affect anyone. Show understanding for the occasional late start and balance this with letting your nanny leave early now and then.
Personal Perks: Simple acts like offering a takeaway during babysitting nights, or access to your Netflix account can go a long way. If they love cooking, why not leave some cash for them to buy special ingredients?
Fair Sick Pay: Remember, nannies are just as prone to illness as anyone. Fair sick pay ensures they don’t suffer financially for something out of their control, especially if it’s a bug caught from the children.
Access to Household Amenities: If your nanny is a baking enthusiast and you have a top-notch mixer, let them use it. Similarly, if their washing machine breaks, offering yours is a gesture of goodwill.
Invitations to Family Events: Whether for work (with overtime pay) or as a guest, inviting your nanny to significant family events shows that you value them as part of your extended family.
Thoughtful Gifts and Recognition: On their birthday or during festive seasons, a thoughtful gift or a voucher from their favorite store can be deeply appreciated. Remember, personalized appreciation often holds more value than extravagant gifts.
Annual Reviews and Rewards: A yearly review of their performance is a good practice. If a pay raise isn’t feasible, consider other forms of appreciation, like extra holiday time or a heartfelt acknowledgment of their hard work.
Recommendations and Referrals: If your nanny is open to extra babysitting, recommending them to your friends can be a great help. And if not, guide your friends to reliable babysitting resources.
Daily Gratitude: Never underestimate the power of a simple ‘thank you.’ It’s a daily reminder that their efforts are seen and valued.

Conclusion:

In 2023, the key to a successful nanny-parent relationship lies in consistent, respectful, and empathetic interactions. Small, thoughtful actions can make a big difference in fostering a positive and mutually rewarding relationship.

Does my nanny need a pension?

The government’s pensions initiative, known as Auto Enrolment, requires all UK employers to automatically enrol any qualifying employees into a workplace pension scheme and make contributions towards that pension. As a UK nanny employer, you will need to enrol your nanny into a pension scheme if he or she qualifies.

Does my nanny qualify for a workplace pension?

If your nanny is aged between 22 years old and the State Pension Age and they earn £10,000 or above per year, then they do qualify for a workplace pension.

What will happen if I don’t offer my nanny a pension scheme?

If your nanny is eligible for a pension scheme and you fail to enrol them into one, or if you fail to pay pension contributions, you can be fined by The Pensions Regulator.

My nanny doesn’t qualify but still wants a pension, what should I do?

Your nanny still has the right to ‘opt in’ and join a pension scheme even if they do not qualify for a workplace pension. It is your responsibility to enrol them into a suitable scheme.

My nanny qualifies for a pension but doesn’t want one, what do I need to do?

It is a legal requirement for you to enrol your nanny into a pension scheme if they qualify for it, even if he or she doesn’t want one. Once your nanny is enrolled into a pension scheme, they can then choose to ‘opt out’ or ‘cease membership’ of the scheme.

If this is the first time you’ve heard about your Auto Enrolment and nanny employer pension duties, don’t worry! Nannytax provides a fully managed workplace pension service for their clients which means the Nannytax team of pension specialists can take this off your hands!

This blog was written by Nannytax, the award-winning and UK leading nanny payroll experts with 30 years experience.

Discover more about Nannytax here.

What interview questions should I ask a nanny?

During a nanny interview, it’s important to get a clear understanding of who the nanny candidate is, if they’ll be a good fit for your family, and how capable they are of fulfilling your requirements.

We suggest you prepare a list of interview questions ahead of the interviews, so that you can cover everything you need to know! Here are some examples of the sort of questions you may want to ask:

Questions specific to the role

What is your approach to meal planning?
What qualities do you look for in a family to decide whether it’s a good fit?
Describe a typical day at work for you.

Questions about their nannying style

What do you think are the qualities needed to be a good nanny?
What is your approach to discipline?
What are your favourite activities to do with children?

Questions about their education and experience

How long have you worked as a nanny?
Do you have any childcare qualifications?
Are you Ofsted-registered?
And it’s good to ask a few personal questions!

Why did you decide to become a nanny?
What are your hobbies?

For more examples of nanny interview questions,click here.

This blog was written by Nannytax, the award-winning and UK leading nanny payroll experts with over 25 years experience.

Discover more about Nannytax here.

Statutory Rights

As a nanny employer, there will be a number of Statutory Payments you may need to pay your nanny over the course of their employment. It’s important that you familiarise yourself with each payment and it’s helpful to be aware of the terminology when employing a nanny!

What is Statutory Pay?

Statutory Sick pay (SSP)

As a nanny employer, if your nanny is absent from work due to ill health, you are responsible for administering Statutory Sick Pay. As of 2015 employers are no longer able to reclaim SSP from the government, so you will need to cover your nanny’s sick pay yourself (the 2023-2024 rate for SSP is £109.40).

Maternity pay

If your nanny becomes pregnant and goes on maternity leave, as her employer you will be responsible for her Statutory Maternity Pay. The pay rate for the first six weeks of maternity leave is 90% of your nanny’s average weekly earnings, the weekly rate for the following 33 weeks is £172.48 or 90% of your nanny’s average weekly earnings – whichever is lower. Statutory Maternity Pay is funded by the Government but you will need to and are responsible for submitting the maternity pay claim, find out more.

Holiday pay

Your nanny is entitled to a legal minimum holiday allowance and to holiday pay, which you are responsible for paying. A full-time employee is entitled to a minimum of 28 days of paid annual leave – this includes the 8 UK bank holidays. You can use the Nannytax holiday entitlement calculator to work out how many days or hours of paid holiday your nanny is entitled to: www.nannytax.co.uk/holiday-calculator

This blog was written by Nannytax, the award-winning and UK leading nanny payroll experts with over 25 years experience. Discover more about Nannytax here.

How to recognise when your nanny’s had a bad day

I’m sure we’re all familiar with those days that just don’t quite go to plan. You know the ones. Maybe the weather’s bad, one of the children is unwell or the television stops working. Any one of these can turn an okay day, into a really bad day where nothing gets done and you just want to collapse at the end of it.

How would you feel then if your partner or significant other came home to what they deemed a messy house and asked you what you’ve been doing all day whilst they’ve been at work?

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How Nannies Can Help with Back to School

Back to school is often a nightmarish time for working parents. At a time of year where colds, illness, and head lice are rife, not to mention tantrums and an unwillingness to go back to school, it’s a time where your nanny can make the difference between a bad day and a great day.

We’ve put together our top tips for both nannies and parents to help with the back-to-school transition.

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The cost of employing a nanny

You want to employ a nanny and you’re setting out your budget. Here are some costs you need to consider…

What you pay your nanny – this is known as the net wage. You may be able to get childcare vouchers which can go towards paying this amount.

Frequency – weekly or monthly (we recommend monthly to simplify reporting to HMRC)

What you pay on behalf of your nanny – this is tax, National Insurance and (depending on your staging date) work based pension contributions. This combined with what you pay your nanny is the gross wage.

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Spotlight on cars

If a nanny drives as part of her (or his) job then they may use their own car or a car provided for them by their employer. Nowadays most nannies have their own cars but may not be happy to use them for work. If they are then there are several things to take into account:

Mileage – anyone using their car for work can be paid 45p/mile for the first 10,000 miles free of tax. If a nanny does over 10,000 miles this drops to 25p/mile. Miles done should be recorded (most people find a little notebook helpful) and submitted at regular intervals.

Insurance – nannies using their own car need to have business class insurance and the insurer needs to be aware what their job is.

Continue reading “Spotlight on cars”