Impact of the Budget on Employment

The Chancellor of the Exchequer’s 2015 budget announced on the 18th March has some important points for parents employing nannies:

  • 56138-20150117Any nanny earning more than £112 gross per week must be PAYE registered by their employer
  • National insurance must be deducted from all employees earning over £155.00 gross per week
  • Tax must be deducted from all employees earning over £204.00 gross per week
  • From Oct 2015 the minimum wage for those aged over 21 will be £6.70 gross per hour.

Anyone employing a nanny should ensure that the nanny is quoted a gross salary and not a net salary. Indeed in order to plan and protect outgoings as well as avoid any unexpected future tax bills, it is vitally important not only to agree a gross salary with your nanny but also to ensure that all the nanny’s earnings are declared through HMRC. From the outset, employers are also required to be fully aware of -and compliant with- all relevant employment legislation and tax obligations.

Anyone employing a nanny who is unsure of their fiscal and statutory responsibilities can gain help and advice from specialist nanny and domestic payroll agency such as www.way2paye.co.uk

Margaret Cowell

This entry was posted in Advice, Employment, News. Bookmark the permalink.

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