At pounds 270 pw net the cost rises to an alarming pounds 402
At pounds 270 pw net, the cost rises to an alarming pounds 402. All this comes out of your own, already taxed, income, so it is not surprising that some employers try to pay nannies in cash or do not declare the full extent of their earnings.
According to Christine Little, chief executive of Fres (Federation of Recruitment and Employment Services): “A reliable employer would pay a nanny properly. The nanny is vulnerable if something goes wrong and it’s hardly a good basis for a relationship based on trust. The nanny should receive a payslip every time she is paid and a P60 at the end of the tax year.
Where advice is needed, the tax and NI agencies are very helpful. If contributions are not paid the nanny may not be able to claim benefits in the future.”Not surprisingly the Inland Revenue is keen to ensure employers act responsibly. I asked Ayesha Owusa Barnaby, press officer for the Inland Revenue, what could happen to someone “on the fiddle”.”There are all sorts of ways we find out, either by accident or design The records might not add up and we would ask questions. The nanny might leave a job and then say she had previously been paid a higher salary than we have on record Sometimes a nanny may even tell us.
If we discover this we would want to collect any tax due along with interest and penalties.”Gilly MacWilliam, director of Kensington Nannies, sends out leaflets and information to prospective employees about their responsibilities. “When the nanny registers with us we always tell them not to take a job with someone who offers to pay them cash We had one nanny who stayed in a job for five years. When she left it came to light that the employers had not paid any contributions. The nanny didn’t realise and the employer received a bill for pounds 16,000. It was terrible – the family would have nothing more to do with the nanny and refused to provide references.”Coping with PAYE codes, tables, deductions and net and gross figures can appear to be all too taxing but, before you reach for your accountant’s number, help is at hand For about pounds 100 a year it can all be done for you. Two companies, the Nanny Payroll Service and Nanny Tax, offer a full service with no hidden costs. They provide information and advice, issue P45s and P60s, pay slips, monthly payroll reports and year end returns.Doing It YourselfI asked Ayesha at the Inland Revenue just how easy it is to “do it yourself” “It’s not as daunting as it seems.
If you need help, you can make an appointment at one of our inquiry centres (attached to local tax offices) or telephone our employers’ helpline on 0345 143 1443.”A leaflet “Thinking of taking someone on” is available from your local tax office. It explains about PAYE, tax and national insurance contributions for employers. Fres provides information to parents on employing a nanny, choosing a nanny agency and a list of member agencies.Another useful contact is Pann (Professional Association of Nursery Nurses). Tricia Pritchard is their professional officer: “Employers, nannies and agencies contact us for information on all fronts: employing nannies, advice on good practise, salaries, insurance, tax and NI. We send out an information pack including specimen contract of employment.”.
In visual arts circles she is described as one of the country’s leading gallery directors In Birmingham she is described as a woman with a mission. And in Elle magazine she is described as “a one woman Scottish themed party”. “I wore a pretty violent combination that day,” admits Liz Ann Macgregor, the Orkney-born director of Birmingham’s Ikon Gallery. “I had my bagpipe watch, tartan bag, tartan outfit and tartan shoes.” Then she sighs. Has her pounds 4m lottery award been withdrawn? Has next week’s re-opening of the Ikon Gallery in a fascinating architectural renovation of a Birmingham Victorian school been postponed? Nothing so trivial.
“I’ve heard to my horror that Doc Martens are going to stop making tartan boots, I shall have to call them and see if we can come to an arrangement.”Ms Macgregor is proud of her roots. She grew up in the Orkneys, studied at Edinburgh University, drove an “art bus” round the Highlands, and so as the head of Birmingham’s only contemporary art gallery she continues to wear her Scottish colours.
