Employer's Information
What we can do to help
Contact us, and on receipt of your cheque, we will register you as an employer with the Inland Revenue. We can also arrange it so that all Inland Revenue communications regarding the payroll (eg change of tax code) come to us, so you don't have the bother of forwarding them.
Complete our online form to give us the key information regarding your nanny, and her earnings ( you can phone us, and we will complete it over the phone if you prefer).
Send us your cheque by post, and we will start producing your nanny's payslips with immediate effect.
What if it's the middle of the tax year?
That doesn't matter. We can start doing your nanny's payroll midway through the tax year, as long as you, or your previous payroll provider can tell us the gross pay, and tax and NI deducted to date.
If your nanny's pay is in a mess
We can backdate your fee to the beginning of the mess, sort it out, produce payslips for the previous months, and year end returns (if required) and let you know the outstanding tax and National Insurance due to the Inland Revenue.
What you will still have to do
Draw a monthly (or weekly) cheque for your nanny's net pay, as notified to you by us. This can also be done by standing order, if your nanny's pay is the same each month.
Draw a 3 monthly cheque for tax and National Insurance due to the Inland Revenue, and forward it to them with the Inland Revenue paying-in slip.
Notify us by email, fax or post of any changes in salary, overtime etc you have agreed with your nanny
At the end of the tax year ( 5th April), if you wish us to prepare a P11D (statement of expenses and benefits paid to the nanny), you must notify us of all expenses and benefits in kind paid to your nanny during the tax year. You must keep records of such payments, including all receipts, where appropriate.
Contracting to pay a fixed net amount to your nanny
Despite the prevalence of negotiating pay net of tax with nannies, we strongly recommend that you calculate the relevant gross pay (we can help you with this) and draw up a contract of employment that specifies this gross figure.
Contracting to pay a net amount can leave you out of pocket if:
Agreeing a weekly or monthly amount
It is common to discuss nanny's wages in terms of a weekly amount. Unless your nanny is being paid weekly, you must agree a monthly or annual salary with your nanny.
Mileage Allowances
Where your nanny is paid a mileage rate to use her/his own car for her/his duties, you are allowed to pay a mileage rate of up to 40p per mile for up to 10,000 business miles per annum and 25p per mile over 10,000 miles without your nanny incurring tax or NI on the payment. If you pay mileage for your nanny's journey from their place of residence to your home (her/his normal place of work) this would always be taxable. It is recommended that you do not do this.
What if I change nannies
No further fee is required. As long as you only employ one nanny at a time, only one fee is due per annum.
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