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