Nanny Matters - Nanny payroll specialists

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Agree how much you want to pay your nanny

The amount you decide to pay will depend on many factors, such as experience, qualifications, availability and geographical location.

If you are unsure what to offer, ask your local nanny agency. Tinies Childcare  will have a branch near you, and will be happy to give you free advice about going rates and availability in general.

Do make sure you agree a gross rate, not a net rate.  Gross Pay is the amount before deductions, and Net Pay is the amount of pay the nanny actually takes home. That may seem obvious, but in some parts of the country, some nannies make the mistake of requesting a particular net pay.  If you agree that net rate, either you or the nanny could lose out significantly.  Here’s why:

• A net rate means that the employer pays the tax and NI on top, no matter how high it might be. That means the employer could end up paying tax that arises from a previous year, before the nanny started. That’s why no business would ever agree a net rate.

 • A net rate means that the nanny misses out on any tax refunds, e.g. due to a period of lower earnings or a gap between jobs. That’s just not fair.

 • A net rate means that the nanny misses out on the increase in the personal tax-free allowance each year.  That’s normally worth £10 per month in extra net pay, but in recent years it has been much higher.  The cumulative effect of this is that ‘net pay’ nannies have lost out on hundreds of pounds over the past few years. That’s not fair either.

Always negotiate a gross rate, and we’ll explain how much your nanny should take home net (or you can use our calculator).

In a hurry? Register now and we will get things moving the next working day.

Chosing a payroll service

Why a written contract is important

Having a written contract of employment in place is a legal requirement, no matter how informal the relationship feels. A good contract will ensure both parties know what is expected, preventing misunderstandings at a later date.

The document has to be given to the nanny within 8 weeks of the start date, although in many cases it makes sense to prepare it much earlier if you can. We provide our standard contract at no extra charge.  Just register your details and we will send this across to you within one working day. We also review contracts and guide you on the details such as overtime, holiday pay and sick leave. Our employment advice is unlimited, and all this is included in our annual subscription.

In a hurry? Register now and we will get things moving the next working day.

 

 

What You Get

Your responsibilities as an employer

Our job is to help make sure you meet your legal responsibilities as an employer and your contractual responsibilities to your nanny.

HMRC need you to register as an employer as soon as your nanny starts, make monthly deductions from her pay and submit copy payslip information on or before each pay day.  We do all this for you. You must pay over the tax and NI deducted, along with Employer’s NI, either once a month or once a quarter.  We’ll tell you exactly what to pay and when to pay it. Your nanny has various employment rights, such as paid holidays and the right to be paid the National Minimum Wage.  We’ll explain all these and guide you through.

Last, but not least, your nanny has to be paid correctly, paid on time, and given a payslip.  We’ll make sure this happens every time.

Changes are on the way. Auto enrolment means you will need to make pension contributions at some point in the next 2 to 3 years. Read more about this change here

In a hurry? Register now and we will get things moving the next working day. 

Chosing a payroll service

Choosing a payroll provider

All good nanny payroll companies will provide you with payslips and tell you how much to pay HMRC, but many hit you with additional charges further down the line. Make sure you know what you are paying for before you sign up.

Watch out too for those that try to sell you add-ons that you simply don’t need, such as extra insurance. In most cases, your household insurer will provide you with adequate cover at no additional cost, so try there first.

We have a single £240 annual subscription for our monthly payroll, with no additional or hidden costs, regardless of how many nannies you pay during that period.  Many nanny payroll companies charge per nanny, and will charge you again when you have a leaver and new starter.

Included in your £240 annual subscription:

• Dedicated customer service email address answered in 4 working hours. Try the others and see how long they take.
• Dedicated customer service direct telephone number answered by our payroll specialists in 3 rings. No electronic menu.
• Access to our experts to cover any employment questions including employment legislation and unusual contractual arrangements.
• HMRC registration if required.
• HMRC liaison (we talk to them so that you don’t have to). 
• Notification of changes accepted by email, phone or letter. 
• Email updates about legislative and taxation changes.
• Unlimited advice for your nanny too, on your behalf.

We don't charge extra for....

• Paying a second employee
• Paying a temp when covering sick or maternity leave
• Our employment contract
• Setting up or closing down your PAYE scheme
• Making changes to your payroll, e.g. overtime, sick pay, holiday pay,maternity pay, starters or leavers
• Claiming tax refunds, or funding for SMP
• Backdated payroll problems

We do charge extra for....

• Weekly payroll 

Weekly payroll is an additional £40 pa, and there is a very good reason for that: we want to discourage you from paying your nanny weekly because of the extra work created for you and for us, with much tighter deadlines for notifying HMRC if anything changes. Very few people are paid weekly nowadays; monthly pay is best practice.  If you want weekly, we can do it, but do try to persuade your nanny to accept monthly pay instead. We can help by working out advances or loans to avoid any hardship issues.

In a hurry? Register now and we will get things moving the next working day.

Chosing a payroll service

Setting up payments

Paying your nanny on time is a fundamental responsibility. We can help you find the best method for you and your nanny.

Monthly Pay

Monthly pay, in arrears, is by far the best and most common practice. You can pay 1/12th of the nanny’s annual salary each month, or you can pay your nanny according to the actual hours they will work, or something in between.  Our in-house experts will help you decide how best to structure your nanny’s pay, including term-time contracts and irregular hours, and make all the necessary calculations for you.

Pay Day

A month end pay day is recommended, e.g. the last working day in the month, or, if you prefer a fixed date, the 28th.  

Transferring the net pay

We’ll tell you how much to pay your nanny so that you can arrange a bank transfer from your account to the nanny’s account.  You retain complete control of your bank account at all times.

After the first month or two, the core net pay will normally settle at the same amount every month. At that point you may decide to set up a standing order to the nanny. Of course, we can still make adjustments as we go along.

Cash in Hand

There’s nothing illegal about paying an employee in cash, provided those payments go through a payroll.  However, ‘cash in hand’ payments, made without informing HMRC, are definitely not allowed.  A parent is breaking the law when they pay their nanny ‘cash in hand’ (and a nanny may also be breaking the law by accepting such payments). Contact us for free, confidential advice about your situation.

Childcare Vouchers

You could pay all or part of your nanny’s net pay using Childcare Vouchers, provided she is a registered nanny.

In a hurry? Register now and we will get things moving the next working day.

 

Chosing a payroll service