Age and Cultural exchange programme
An au pair is between the ages of 18-30 and comes to the UK to learn or perfect her English in exchange for childcare.
A nanny can be any age and does not take part in a cultural exchange programme.
Wage and working hours
Au pairs can only work on average 30 hours a week and on top of their accommodation will normally get what is classed as ‘pocket money’. ‘Pocket money’ on average is £100.00 per week and as long as they earn less than £118.00 per week and have no other income this does not need to be declared to HMRC.
A nanny receives a wage in line with the national minimum wage.
Au pairs must have the chance to attend a language course.
A nanny does not have to attend a language course.
An au pair is seen as a temporary family member.
A nanny is seen as an employee.
An au pair needs a visa specific to an au pair.
Nannies who are coming from abroad need a work visa or permit. A nanny cannot work under an au pair visa.
As a nanny your employer has a legal obligation to provide you with a contract of employment within 2 months of your date of starting, this should detail the terms and conditions of your employment and you should ensure that this includes at least some of the following:
Your name and job title
Working days and hours
Duties and responsibilities
Statutory payments (SMP, SSP)
Disciplinary and Grievance procedures
You should always check and read the contract fully and understand the details and anything you are unsure of or you believe is not included should then be followed up with the employer before you sign and date.
It is that time of year, you may want to give nanny a Christmas bonus, but remember it must be processed through the payroll!
As HMRC class this as taxable income.
If you have decided to give nanny a Christmas bonus, whether it be £50 or £1,000, you must declare it and it is subject to tax and NI.
If you have agreed a net bonus, there will be additional tax and national insurance on top of this amount. Whereas, if you have agreed a gross bonus, (please don’t give them that amount), as tax and national insurance will need to be deducted from that and you then pay nanny the net amount.
A gift such as a voucher, chocolates, wine will not be seen as a benefit in kind as long as it does not exceed £50.00.
Childcare vouchers will cease from the 5th October 2018 and thereafter the Tax-Free Childcare scheme will take over.
You can get up to £500 every 3 months (£2,000 a year) for each of your children to help with the costs of childcare.
If you get Tax-Free Childcare, the government will pay £2 for every £8 you pay your childcare provider via an online account.
You can get Tax-Free Childcare if you and your partner (if applicable) are –
in employment or getting parental leave, sick leave or annual leave
each earning at least the National Minimum Wage or Living Wage for 16 hours a week – this is £131.36 if you’re 25 or over
This earnings limit does not apply if you’re self-employed and started your business less than 12 months ago.
Your child must be 11 or under and usually live with you. They stop being eligible on 1 September after their 11th birthday.
Adopted children are eligible, but foster children are not.
If your child is disabled, you may get up to £4,000 a year until they’re 17. They’re eligible for this if they –
get Disability Living Allowance, Personal Independence Payment or Armed Forces Independence Payment
are registered as blind or severely sight-impaired
You’re not eligible if either you or your partner has a taxable income over £100,000.
Your childcare provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare.