Holiday Allowance for nannies

Our recommended partners at www.PayrollForNannies.co.uk provide payroll advice for
parents and have created this content.
A full time nanny is entitled to 28 days holiday (5.6 weeks) which includes bank holidays.
Employers are entitled to choose all the dates of holiday nanny should take, but in practice
nanny normally chooses 2 weeks while the employer chooses the other 2 weeks.
In your contract with nanny, make sure you ask for notice for nanny’s proposed holiday this
will allow you to find alternative childcare. Some employers ask for at least 4 weeks notice.
We would recommend you keep note of holiday taken paid or unpaid, just in case nanny
leaves part way through the year and has over taken on holiday. This way any unpaid or
over paid holiday can be paid/deducted in her final payslip.
If nanny works more than 5 days a week, their holiday entitlement is capped at 28 days. It is
not a problem if you agree more day’s holiday with nanny – this could be a condition of her
working for over a stated amount of time.
If nanny is part time, she is entitled to annual leave (28 days including bank holidays), but
pro-rated. So if nanny works 2 days a week, her holiday allowance is calculated:
2 days a week x 5.6 annual holiday allowance = 11.20 days holiday.
You must not round the holiday allowance down to 11, but can round it up to 11.5 days.
If nanny works different hours each week, you calculate her holiday pay by averaging her
last 12 weeks worked hours then multiply it by 5.6, this then gives you her holiday
entitlement in hours for the year and when she has a day’s holiday or was due to work on a
public holiday, whatever hours she was scheduled to work that day are then deducted from
her overall annual entitlement.

Education and Training

We have teamed up with Little Ones Training & Education, to bring you a fantastic opportunity. They are offering 20% discount on any of their EYCE, Sleep Well or PAICE courses. Call them on 020 7112 8057 quoting nannyjob to book and look at their website for information on these and other courses they run.
https://www.littleoneslondon.co.uk/childcare-courses

P11D Information

P11D Information
As it has reached the end of the tax year, it is your responsibility as an employer to declare
and prepare a P11d if required.
The deadline for filing the P11d is 6th of July.
These are some of the benefits that should be declared are:
Personal use of a car
Private car mileage/fuel allowance
Private Medical Insurance
Flights home if employing nanny from overseas
Living accommodation
Gym or other club membership
Subscriptions and professionals fees
Beneficial loans – interest free or low interest
Failure to declare them will result in a £100 penalty for each month it is late

Starter Checklist

Our recommended partners at www.PayrollForNannies.co.uk  provide payroll advice for parents and have created this content.

 

Normally a nanny who has just started in your employment will hand you their P45 from previous employment which details the tax code, gross earnings and tax deducted.

P45’s are only valid and used if they are for the current tax year.

If this is nanny’s first ever job, she will not have a P45 and will be required to complete a Starter Checklist.

Other reasons for completing a Starter Checklist could be that nanny has misplaced or lost her P45 or has not worked in the current tax year.

The starter checklist once completed will advise what tax code needs to be operated for nanny and if a student loan needs to be deducted.

A link for the Starter Checklist:

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/PersonalTax_iForms/1.0/SC&template=SC.xdp

Working Time Regulations Explained

Our recommended partners at www.PayrollForNannies.co.uk  provide payroll advice for parents and have created this content.

The law states that most workers should not have to work more than 48 hours per week.  This includes overtime. If an employee wishes to work more than 48 hours a week, they can do so, but the employer cannot tell the employee that they have to.

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Can a Nanny Be Self-Employed?

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A nanny is considered an employee if they –

  • Have to do work for themselves
  • Can be told what to do at any time, where to carry out work and how to do it
  • Paid by the hour, week or month
  • Can be moved from task to task
  • Receive bonus payments or paid overtime

Can a Nanny be self-employed?

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What is the Nanny Share Tax Code Split?

Our recommended partners at www.PayrollForNannies.co.uk  provide payroll advice for parents and have created this content.

The term ‘tax code split’ is where the nanny’s tax-free allowance is split proportionately between their employers so that all parties avoid paying basic rate tax on nanny’s gross pay.

If both employees agree a gross salary than a tax code split is not necessary, as all parties’ total costs will be protected, and each employer will be paying the correct deductions.

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What is a Nanny Share?

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A nanny share is where nanny cares for the child or children of two or more families at the same time, and the costs are split between the families.  These types of arrangements are becoming an increasingly popular way of making nanny employment more affordable and accessible for many families.

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Contract of Employment Advice for Nannies and Parents

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All nannies are entitled to receive a contract of employment within 2 calendar months of their start date. It should contain the Terms and Conditions of employment, including the following:

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Student Loan Advice for Parents & Nannies

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A nanny may have an outstanding student loan when starting work for a parent, this will either be noted on their P45 from previous employment, or HMRC will send a notice through to the parent or the parent’s payroll agent.

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