Category: parents

Spotlight on Holidays

As employees nannies are entitled to paid holiday and the amount is specified in the contract. It can be expressed as weeks, days or hours depending on the nanny’s employment pattern – see here for more.

Previously the norm was to give 4 weeks plus Bank Holidays, but recently the trend has been to state 5.6 weeks (28 days) including Bank Holidays, which usually works out to the same amount but fairer to part-time workers who may not be actively working on Bank Holidays but are still entitled to the same proportion of holiday as full-time employees. Holiday in a nanny share can be complicated to arrange but it’s important that the nanny gets their full holiday entitlement so both families must communicate clearly.

Continue reading “Spotlight on Holidays”

Spotlight on Christmas – gift or bonus?

Most people like to give their nanny a token of appreciation over the festive season. This can range from a bottle of wine or basket of toiletries to a week’s wage as a bonus. When deciding what to give your nanny there are two important things to consider –the budget for this gift and future gifts, and tax.

Any kind of cash bonus is taxable. It needs to be declared to HMRC and appear on the payslip, along with the tax and NI deductions. This is worth bearing in mind if the intention is to give a nanny an amount other than their weekly wage, as adding £100 will not translate to giving them an extra £100 spending money. Even if the bonus is in the form of cash or a cheque inside their Christmas card tax and NI still need to be paid on the value of it. Vouchers are also treated as cash.

Some employers find cash impersonal, although it is a safe option, and prefer to give a gift. Some gifts are taxable, particularly if they can be resold, but others are exempt as they are considered a trivial benefit. Seek advice from a payroll agency or by calling the HMRC employer helpline, then request confirmation in writing from your local employment office.

Above all remember that gift-giving should be a pleasure, not a chore (remember this when buying for Aunt Mabel too), and it is far worse to not give anything than get it wrong, particularly if you keep the receipt!

Spotlight on NWOCs (nannies with own children)

Gone are the days when nannies stayed with families until they were old and grey, forfeiting families of their own, and for many families gone are the days when they could comfortably afford to have a stay at home parent. Nannies are understandably reluctant to pay someone else to do what they are qualified to do, so look for nanny jobs where families are happy for them to bring their own child along.

There are many advantages to this kind of arrangement for employers. A nanny who can bring their own child may be happy to accept odd hours such as before and after school and full time in the holidays, enabling them to balance time along with their child and earning a wage. A nanny whose child is the same age as her charges provides a playmate, which can be particularly valuable for only children and appreciated by parents who would like their child to be around other children but for whatever reason don’t want out of home care. Finally nannies who are allowed to bring their own child are often doubly motivated to provide stimulating activities and promote good social skills, as it benefits their child too. If you get the logistics right it can be a very stable arrangement, which reduces the time you spend worrying about childcare.

There are downsides: you may need extra equipment such as a double buggy or extra high chair, it’s an extra cost to feed another child, if nanny’s child is younger you may need to keep baby-proofing for longer and there’s added potential for bugs and breakages. Your children also won’t be the full focus of your nanny, even if she puts her own child second most of the time. To compensate for this many nannies who want to bring their on children are happy to accept a reduced rate of pay, meaning you can have an experienced nanny for less.

Having a nanny bring their own child can be a really positive and beneficial arrangement all round. The important thing is to make sure that everyone is a good fit – parenting styles and boundaries need to be aligned from the get go – but a good match can last for years.

Spotlight on Compassionate Leave

Recently we have received a couple of questions on our Facebook page from nannies who have sadly been bereaved and wanted to know what their rights were and what was normal for employers to offer.

As employees nannies are entitled to time off for dependants, which is unpaid, and exists to enable them to deal with emergencies such as arranging or going to funerals. Any member of their immediate family or someone living in their household is a dependant, but this can also extend to anyone who relies on your nanny for help in emergencies.

It is rare for nanny contracts to have a section which deals specifically with compassionate leave, although employment experts say that mentioning bereavement leave specifically in contracts has a positive impact on employer-employee relationships. In the absence of contractual arrangements paid time off is at the employer’s discretion, and you are expected to be reasonable and consistent in your handling of bereavement. Although paid time off will be appreciated as it removes concerns over finances from the equation it is more important to be sensitive and understanding to your nanny’s needs.

Time off around the death is of course only one aspect of bereavement. Grief can have a profound impact and significantly affect a nanny’s ability to do their job. A nanny who is suffering from grief may visit their GP and be signed off work. This is treated as normal sick leave and not compassionate leave. ACAS produce a comprehensive guide for employers on dealing with bereavement at work if you require further guidance.

A live in nanny’s space

Live in nannies offer great flexibility and be cheaper than a live out nanny, but do you have enough space for another adult living in your home?

Unlike an au pair a live in nanny is not part of the family. She (or he) will probably want to clock off at finishing time and spend their weekends independent of you. This means she may want to prepare her own meals at different times to you, use the bathroom after a leisurely lie in on a Saturday morning or have friends over. It also means she’s likely to be spending a significant amount of time in her room so it needs to be somewhere relatively spacious and comfortable.

If you’re reading this and panicking because you don’t like in a mansion, don’t worry. There are some simple things you can using your existing space to better advantage.

Bathrooms

If you only have one family bathroom then your nanny will have to share. If you have a room with an en suite consider giving that room to your nanny (unless it’s the only room that can fit a double bed), as you’re less likely to be disturbed and they can be more private. Otherwise you nanny can share a bathroom with the children but you need to uphold your end of the bargain and only use your bathroom, which if your en suite only has a shower may wear thin after a while.

Nanny’s bedroom

Be creative with your use of the space. You can get all kinds of bed/storage solutions – remember that you nanny will be bringing everything she needs for every season with her. Unlike au pairs she probably won’t need a desk, but she’ll appreciate a comfy chair. Most nannies these days have a laptop or tablet and watch their favourote shows or films on catch-up or using netflix so there’s no need to find space for a TV. A full length mirror is usually appreciated, and if you don’t want things stuck to the walls provide a pin-board. Keep decoration and linen fairly neutral so your nanny can easily put her personal stamp on her room.

The living room

However nice you make your nanny’s bedroom she won’t want to stay in it all the time. If your children have a playroom then offer her that space to use in the evenings, if not then set out your expectations about the living room. It’s reasonable for you to want to have some couple/family time too.

The kitchen

This can be the trickiest room in the house to share. Nannies often eat with their charges, but at weekends you need to decide whether you’re offering your nanny the option to eat with you or not. If not then it’s important to let her know when it’s okay for her to use the kitchen, particularly if you prefer to take over the entire room to prepare elaborate meals! Allocate your nanny a shelf in the fridge or freezer for her food, or better yet put a mini fridge into her room. You can also provider her with a kettle to make a cup of tea or coffee so she doesn’t need to come down in her PJs if she fancies a cuppa.

Before making the decision to have a live in nanny, first thing about how you’ll use the space to accommodate someone else living in your home. When you get the right person it can be a brilliant choice!

Snow plans for families

Bad weather is going to hit most of the UK this month, and as we all know that can cause disruption to all sorts of arrangements. Planning ahead is key to minimising impact on you and your family. If you’re a nanny check out snow plans for nannies!

  • Prepare for schools to be closed. Most will take a safe rather than sorry approach. If you usually have a nanny before and after school check whether they’re free to work the whole day for extra pay.
  • Try to leave work early or at least on time. Remember that your nanny needs to get home too and it will be darker and colder by the time she leaves.
  • Offer your nanny a bed for the night if it’s looking risky. They may not take you up on it but if they do
  • Make sure you’ve got enough food, supplies and blankets. We don’t think you’ll be snowed in for days or that your heating will break down at the most inconvenient time but it’s better safe than sorry. There’s nothing worse than having to go out for milk or a pack of nappies in snow when it could have been prevented.

Nasty payroll surprises and how to avoid them

It’s the time of year when parents are doing their first payroll run with a new nanny and if your initial sums were out it can be an unpleasant experience discovering that you’ve got a higher bill than you thought you had.

Problem #1 Nanny has another job

Even if it’s a Saturday job, if she had that job first she’ll be on a BR tax code with you, which means no tax free allowance and all earnings taxed at 20%. It used to be possible to split tax codes but HMRC are very reluctant to do that since real time information (RTI) was introduced. If you agreed a net salary then you are liable for all the tax and National Insurance contributions, which can be a lot more than you bargained for.

Problem #2 Nanny has a student loan

Student loan repayments kick in above £325/week (£1,409/month or £16,910/year) gross.  9% of the amount above this salary needs to be paid to the Student Loans Company on the nanny’s behalf, and you’re also liable for this if you agreed a net salary, which if a nanny is earning £2,250 a month is an extra £75. Nannies with degrees are becoming increasingly common, and most of those who have studied in the UK will have taken out a student loan. An even nastier surprise is where you think you’ve employed a nanny and are paying under the repayment threshold but overtime has pushed them over.

Problem #3 Nanny has a special code      

HMRC allocate codes based on an individual’s situation. Most people with one job will have a standard tax code (for 2014 this is 1000L), however if a nanny has to pay back tax which was underpaid in previous years or receives benefits in kind they may have a special tax code which reduces their personal allowance (for example 700L which means they have a personal tax allowance of only £7,000 for the year), increasing your tax liability if you have agreed upon a net salary.

The simplest way to avoid any nasty surprises your end is to agree a gross salary in the contract. That way you know what your costs are, and you deduct the amount of tax (and anything else) your nanny is required to pay rather than adding to your bill.

Pitching a nanny salary

Pitching a nanny salary can be difficult. No two nanny jobs are the same, ever family has different requirements and expectations, and even jobs with many variables in common might be advertised with very different salaries. There are four main things which affect a salary: location, the nanny’s profile, the demands of the job and perks.

To get an idea of salaries in you local area look at jobs which are being advertised. The nannyjob.co.uk search feature will enable you to do this and includes jobs through agencies which can offer a good guide to what nannies are really looking for and what nanny agents feel is a reasonable salary for the nannies they place.

Just as every job is different every nanny is different. There are all kinds of nannies from those with no qualifications to those with relevant postgraduate degrees, those with no experience of nannying or even any childcare to those with many decades. Take into account the kind of nanny you want. Experience and qualifications come with a price tag, and an experienced nanny who feels undervalued won’t hesitate to look around for a better deal. Equally an inexperienced or unqualified nanny might be cheaper but will need more guidance and management from you and the time you need to invest may outweigh the additional cost of a more experienced nanny.

Think objectively about the demands of the job. Do you need to sweeten the deal? Long hours or a very heavy workload may need a higher salary to attract candidates. Travel might seem an attractive prospect but in reality it’s very disruptive for a live out nanny as they are still paying rent and bills. Even a live in nanny may have a gym membership she can’t use or have to cancel meeting up with friends. Although a nanny is paid on a per family basis, a job with 6 children will be less attractive than a job with 2 so you may need to offer more money to make it worth their while.

A nanny share represents increased work for the nanny, not necessarily because of the extra child (although dealing with children close in age can be more challenging than a sibling group) but because they then have 2 sets of parents to communicate with and please. Scheduling holiday becomes more complicated and there’s a risk that they may lose their job if the share falls apart. To reflect all this nanny share salaries are usually around 25% higher (gross) than a single family – still a cost saver for you!

Part time jobs tend to get more per hour gross – a nanny with multiple employers may end up being on a BR tax code since real-time reporting was introduced (which is why you should never agree net) so to keep their take home pay in line consider paying a little more. It’s also harder for a before and after school nanny to get a job during school hours, or an afternoon nanny to fill their mornings, so again consider paying a little more than a full time position would per hour so they can survive.

Job longevity is a definite perk. If your job is a relatively temporary one or your children are close to school age again you might need to offer a little more to compensate for the lack of stability, unless you can guarantee the job with the same pay but reduced hours in the future.

One of the most common perks is allowing a nanny to bring their own child(ren) to work with them. There are lots of different opinions on pitching a salary for a nanny with own child (NWOC). Some will say you’re paying for the experience and competence of the nanny and that stays the same even if she brings her child along. Others saying a 20-30% reduction is pay is appropriate because your children are no longer getting undivided attention, you cannot enter into a share to reduce your costs, you have increased wear and tear on your house and your nanny may be less flexible with hours. Remember you cannot pay less than minimum wage!

Finally the most important thing is what you can afford. There’s no point advertising £15/hour if you can’t afford it. It’s best to advertise a narrow range and keep some in reserve. We suggest aiming to keep round £1/hour to negotiate with comfortably. Although it may not feel a lot on an hourly basis you don’t need to go up in increments of £1/hour when negotiating – for most nanny jobs that’s £50/week, or £2.5k/year, so you can add £10 to the weekly pay even if it only works out to 20p/hour. This will allow you to offer an exceptional candidate that little bit extra at interview, or plan a pay rise in the future.

New additions to the family

Is keeping your nanny during maternity leave a luxury or an essential? Unless you’re going back to work very soon after the birth, most people would say it’s a luxury and one that they would struggle to afford. But chances are you’re going to want your nanny back when you go back to work since she’s put in time bonding with your older child(ren) and knows your house, your area, your routines and your preferences. So how do you deal with this?

The legal situation is that your nanny has a job under their original terms and conditions until you make them redundant. So they will be expecting to stay on doing their usual hours and receiving their usual pay during your maternity leave. There are big advantages to keeping your nanny – you know that you will have time to rest and focus on your newborn, your older children won’t have their routine disrupted and you have someone that you know and trust who can care for the new arrival while you spend time with your other children – but we know that the cost can make the impractical.

In this case you need to renegotiate your nanny’s terms of employment. You might want to keep them on part time, or investigate the possibility of a nanny share based at someone else’s house, but it’s vital to discuss this early on with your nanny. You might find that they’re happy to take a break for a few months to go and do a ski or summer season abroad but have a secure job to come back to, or that they’re happy to reduce their hours as long as they can find another job. You may equally find that they’re just expecting things to carry on as normal. As awkward as it might feel to have this conversation the sooner you get this out in the open the better. She will be feeling just as unsure about her future. Hopefully your nanny will respect your timescale and if you want her to commit to staying until after the birth so she can care for your older children while you’re in hospital then make that clear from the start, and consider offering a bonus to tempt her away from any offers that require an earlier start.

Remember that making your nanny redundant at the start of your maternity leave, while it will save your money in the short term, means that you are committing yourself to finding a new nanny at the end of your maternity leave which is a substantial investment of time and money at a point when you want to be making the most of your time with your children.

All the best for the rest of your pregnancy!

Expanding social circles

A common worry about nanny care is that children will end up socially isolated and stuck in the house with their nanny all day but one to one care doesn’t mean that your nanny and child will spend all day every in just each other’s company. A good nanny will work with you to develop and expand your child’s horizons.

 

Babies benefit from being in their own surroundings with a stable, consistent adult carer much more than they benefit from seeing other babies at nursery. Although they might find other babies intriguing for a short time, children don’t actually play together until they are about 2 years old. This doesn’t mean, of course, that it’s healthy for them to go without other social contact all day, no more than it’s healthy for a nanny, but you don’t need to send your child to nursery for them to see other children. Search out local toddler groups, classes and story times and trust your nanny to make judgements about the people she meets.

 

The friendships that develop between children who see each other with their nannies can be a lot more flexible than the friendships developed at nursery. They can have the experience of inviting their friends to their house, which involves sharing their toys and their space, as well as seeing where their friends live. They get the fun of spontaneous play dates and learn to be a good host as well as a good guest.

 

A benefit of encouraging your nanny to create a local circle of nanny friends is that if she is ever sick, or you have trouble covering her holiday, you can reach out to those contacts who will know your child and your nanny’s style of care, which is hopefully the same as yours, and create a short term nanny share, with the understanding that you are happy for your nanny to reciprocate and host another child at your house if their nanny is ever ill.