Spotlight on cars
If a nanny drives as part of her (or his) job then they may use their own car or a car provided for them by their employer. Nowadays most nannies have their own cars but may not be happy to use them for work. If they are then there are several things to take into account:
Mileage – anyone using their car for work can be paid 45p/mile for the first 10,000 miles free of tax. If a nanny does over 10,000 miles this drops to 25p/mile. Miles done should be recorded (most people find a little notebook helpful) and submitted at regular intervals.
Insurance – nannies using their own car need to have business class insurance and the insurer needs to be aware what their job is.
Car seats – there’s some debate about who should provide car seats. If the parents already have car seats they are happy with, particularly if you prefer your children to be rear facing, then they might be tempted to swap car seats between cars. The downside to this is that the seats may not fit in the nanny’s car and the risk of fitting them incorrectly goes up. The safest option is to buy a second set of seats for the nanny’s vehicle, but if they’re taken in and out at the weekend they may still be installed wrong unless the parents opt for isofix.
Parking – if an employer insists that a nanny uses his or her own car for work then they as the employer need to ensure that the car can be parked at work and cover that cost.
If a nanny doesn’t have a car but needs to drive as part of the job the parents will need to provide a car. This may be the family car or a second car just for her use.
Insurance – it is always the employer’s responsibility when providing a car to organize appropriate insurance. Depending on the nanny’s driving history this may be a significant cost. They will also need to decide who is responsibility for the excess in case of any accident.
Off duty use – private use of a work car is considered a benefit in kind and can be taxed. Parents should talk to their payroll agent for more advice.