Tag: nannies

Things to consider when employing a non UK nanny

Our recommended partners at www.PayrollForNannies.co.uk provide payroll advice for
parents and have created this content.
It is important to make sure you take proper steps to make sure nanny can be employed
legally in the UK. If you do not you could face a £20,000 penalty or worst case scenario a 2
year prison sentence!
You must take a photocopy for identity check of a passport, birth certificate or national ID
card. We would always recommend you see an original version before taking a copy.
An EEA (European Economic Area), employers must check their right to work documents,
take a photocopy, and make sure they are from the EEA country.
For a more detailed guide:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_da
ta/file/441957/employers_guide_to_acceptable_right_to_work_documents_v5.pdf

Payment in Lieu of Notice (PILON)

Our recommended partners at www.PayrollForNannies.co.uk provide payroll advice for
parents and have created this content.
Payment in lieu of notice or (PILON) is when a nanny has been terminated from employment
and not required to work her notice.
In nanny’s contract you can stipulate that nanny’s employment can be terminated by PILON
immediately and payment in lieu of her basic salary will be paid for the notice period, then
you will not need to pay benefits and extra costs that accrue during her notice period.
If in the contract PILON does not specify the pay for this period or no mention to PILON in
the contract, then you as an employer will need to pay benefits and extra costs for this
period.
Tax and national must be deducted from PILON.
In the case of gross misconduct, PILON is not normally paid to the nann

Nanny Leaving

Our recommended partners at www.PayrollForNannies.co.uk provide payroll advice for
parents and have created this content.
Parents, as an employer it is your responsibility to inform HMRC when nanny leaves your
employment, this is done by an FPS submission via payroll software.
If you use payroll4nannies.co.uk we can handle this for you. The main problem we have
when nanny leaves, is that we get notified late that nanny has left. This means that we
submit to HMRC that nanny has been paid for a month when in fact she did not. This can be
corrected, but can lead to issues with nanny’s tax code in the meantime. The same can be
said for pensions. If we have not been told nanny has left, we will submit amounts to HMRC.
This can also be fixed but we will need to request the money back from the pension provider.
If nanny is leaving, you need to see if she is owed any holiday pay which she has accrued
and not taken, this would be paid in her final payslip. It also occurs nanny has taken more
than her holiday allowance, so the overpaid holiday needs to be deducted in her final
payslip.
It is prudent to detail in nanny’s contract that any holiday taken over her allowance upon
leaving will be deducted from her final payslip.
Once nanny’s leave date has been confirmed, you will need to confirm if any holiday pay is
owed or needs to be deducted, redundancy due or payment in lieu due, once confirmed
payslip would be finalised and a P45 can then be processed and submitted to HMRC.

Training and Education

Do you know that the development of language in children occurs in 4 stages? These are babbling stage, single-word stage, two-word stage, and multi-word stage.
If you are interested in learning more about this, take a look of the courses that Little Ones Training and Education has on offer for you!
Don’t miss this incredible offer, which we bring you in partnership with Little Ones Training and Education!  20% off using the CODE: nannyjob.
To learn more about the courses, please visit: https://www.littleoneslondon.co.uk/childcare-courses

Holiday Allowance for nannies

Our recommended partners at www.PayrollForNannies.co.uk provide payroll advice for
parents and have created this content.
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.

Education and Training

We have teamed up with Little Ones Training & Education, to bring you a fantastic opportunity. They are offering 20% discount on any of their EYCE, Sleep Well or PAICE courses. Call them on 020 7112 8057 quoting nannyjob to book and look at their website for information on these and other courses they run.
https://www.littleoneslondon.co.uk/childcare-courses

Can a Nanny Be Self-Employed?

Our recommended partners at www.PayrollForNannies.co.uk  provide payroll advice for parents and have created this content.

A nanny is considered an employee if they –

  • Have to do work for themselves
  • Can be told what to do at any time, where to carry out work and how to do it
  • Paid by the hour, week or month
  • Can be moved from task to task
  • Receive bonus payments or paid overtime

Can a Nanny be self-employed?

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What is the Nanny Share Tax Code Split?

Our recommended partners at www.PayrollForNannies.co.uk  provide payroll advice for parents and have created this content.

The term ‘tax code split’ is where the nanny’s tax-free allowance is split proportionately between their employers so that all parties avoid paying basic rate tax on nanny’s gross pay.

If both employees agree a gross salary than a tax code split is not necessary, as all parties’ total costs will be protected, and each employer will be paying the correct deductions.

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Contract of Employment Advice for Nannies and Parents

Our recommended partners at www.PayrollForNannies.co.uk  provide payroll advice for parents and have created this content.

All nannies are entitled to receive a contract of employment within 2 calendar months of their start date. It should contain the Terms and Conditions of employment, including the following:

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Student Loan Advice for Parents & Nannies

Our recommended partners at www.PayrollForNannies.co.uk  provide payroll advice for parents, and have created this content.

A nanny may have an outstanding student loan when starting work for a parent, this will either be noted on their P45 from previous employment, or HMRC will send a notice through to the parent or the parent’s payroll agent.

Continue reading “Student Loan Advice for Parents & Nannies”