Taxation and HM Revenue & Customs

So how much does it cost to employ someone once you have paid the Tax and National Insurance?
Here is a table to show what the total cost of a nanny is once all the tax has been paid
The figures below have been calculated for the tax year ending on 5 April 2010 using a tax code of 647L.
If you pay your nanny £130 cash, it means you have paid her £134.49 and have to account to HM Revenue & Customs for the £1.80 tax and £2.69 employee National Insurance (NIC). In addition you also have to account for the Employers National Insurance of £3.14. The total cost is therefore £137.63 to the employer of which the nanny receives £130 and Inland Revenue receives £7.63
These figure should only be used as a guide. We advise all employers to seek advice from Inland Revenue or a professional tax advisor such as: .
| Net Pay |
P.A.Y.E. Tax |
Employee NIC |
Gross Pay |
Employer NIC |
Total Cost |
Payable to Revenue & Customs |
| £100 |
£0.00 |
£0.00 |
£100.00 |
£0.00 |
£100.00 |
£0.00 |
| £110 |
£0.00 |
£0.00 |
£110.00 |
£0.00 |
£110.00 |
£0.00 |
| £120 |
£0.00 |
£1.26 |
£121.26 |
£1.47 |
£122.73 |
£2.73 |
| £130 |
£1.80 |
£2.69 |
£134.49 |
£3.14 |
£137.63 |
£7.63 |
| £140 |
£4.80 |
£4.34 |
£149.14 |
£5.06 |
£154.20 |
£14.20 |
| £150 |
£7.60 |
£5.88 |
£163.48 |
£6.85 |
£170.33 |
£20.33 |
| £160 |
£10.60 |
£7.53 |
£178.13 |
£8.77 |
£186.90 |
£26.90 |
| £170 |
£13.60 |
£9.07 |
£192.67 |
£10.56 |
£203.23 |
£33.23 |
| £180 |
£16.40 |
£10.72 |
£207.12 |
£12.48 |
£219.60 |
£39.60 |
| £190 |
£19.20 |
£12.26 |
£221.46 |
£14.27 |
£235.73 |
£45.73 |
| £200 |
£22.20 |
£13.91 |
£236.11 |
£16.19 |
£252.30 |
£52.30 |
| £210 |
£25.00 |
£15.45 |
£250.45 |
£17.98 |
£268.43 |
£58.43 |
| £220 |
£28.00 |
£17.10 |
£265.10 |
£19.90 |
£285.00 |
£65.00 |
| £230 |
£30.80 |
£18.64 |
£279.44 |
£21.70 |
£301.14 |
£71.14 |
| £240 |
£33.80 |
£20.29 |
£294.09 |
£23.62 |
£317.71 |
£77.71 |
| £250 |
£36.80 |
£21.83 |
£308.63 |
£25.41 |
£334.04 |
£84.04 |
| £260 |
£39.60 |
£23.48 |
£323.08 |
£27.33 |
£350.41 |
£90.41 |
| £270 |
£42.40 |
£25.02 |
£337.42 |
£29.12 |
£366.54 |
£96.54 |
| £280 |
£45.40 |
£26.67 |
£352.07 |
£31.04 |
£383.11 |
£103.11 |
| £290 |
£48.20 |
£28.21 |
£366.41 |
£32.83 |
£399.24 |
£109.24 |
| £300 |
£51.20 |
£29.86 |
£381.06 |
£34.75 |
£415.81 |
£115.81 |
| £310 |
£54.00 |
£31.40 |
£395.40 |
£36.54 |
£431.94 |
£121.94 |
| £320 |
£57.00 |
£33.05 |
£410.05 |
£38.46 |
£448.51 |
£128.51 |
| £330 |
£59.80 |
£34.59 |
£424.39 |
£40.26 |
£464.65 |
£134.65 |
| £340 |
£62.80 |
£36.13 |
£438.93 |
£42.05 |
£480.98 |
£140.98 |
| £350 |
£65.60 |
£37.78 |
£453.38 |
£43.97 |
£497.35 |
£147.35 |
| £360 |
£68.60 |
£39.32 |
£467.92 |
£45.76 |
£513.68 |
£153.68 |
| £370 |
£71.40 |
£40.97 |
£482.37 |
£47.68 |
£530.05 |
£160.05 |
| £380 |
£74.40 |
£42.51 |
£496.91 |
£49.47 |
£546.38 |
£166.38 |
| £390 |
£77.20 |
£44.16 |
£511.36 |
£51.39 |
£562.75 |
£172.75 |
| £400 |
£80.20 |
£45.70 |
£525.90 |
£53.18 |
£579.08 |
£179.08 |
| £410 |
£83.00 |
£47.35 |
£540.35 |
£55.10 |
£595.45 |
£185.45 |
| £420 |
£86.00 |
£48.89 |
£554.89 |
£56.90 |
£611.79 |
£191.79 |
| £430 |
£88.80 |
£50.54 |
£569.34 |
£58.82 |
£628.16 |
£198.16 |
| £440 |
£91.80 |
£52.08 |
£583.88 |
£60.61 |
£644.49 |
£204.49 |
| £450 |
£94.60 |
£53.73 |
£598.33 |
£62.53 |
£660.86 |
£210.86 |
| £460 |
£97.60 |
£55.27 |
£612.87 |
£64.32 |
£677.19 |
£217.19 |
| £470 |
£100.40 |
£56.92 |
£627.32 |
£66.24 |
£693.56 |
£223.56 |
| £480 |
£103.40 |
£58.46 |
£641.86 |
£68.03 |
£709.89 |
£229.89 |
| £490 |
£106.20 |
£60.11 |
£656.31 |
£69.95 |
£726.26 |
£236.26 |
| £500 |
£109.20 |
£61.65 |
£670.85 |
£71.74 |
£742.59 |
£242.59 |
| £510 |
£112.00 |
£63.30 |
£685.30 |
£73.66 |
£758.96 |
£248.96 |
| £520 |
£115.00 |
£64.84 |
£699.84 |
£75.46 |
£775.30 |
£255.30 |
| £530 |
£117.80 |
£66.49 |
£714.29 |
£77.38 |
£791.67 |
£261.67 |
| £540 |
£120.80 |
£68.03 |
£728.83 |
£79.17 |
£808.00 |
£268.00 |
| £550 |
£123.60 |
£69.68 |
£743.28 |
£81.09 |
£824.37 |
£274.37 |

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