Second interviews, trials and settling in sessions – to pay or not to pay

First interviews are very rarely paid in the nanny industry. The exception would be paying expenses or a weekend long interview, which doubles up as a trial.

Some parents will offer to pay for the time taken for a second interview. Whether you do or not is your choice, but if you didn’t give your children the chance to meet your nanny at a first interview then she’s probably expecting to come back for a second interview, and many nannies won’t accept a job where they’ve not met the children first. Shortlisting candidates is fairly standard, especially in a competitive market, and second interviews are sufficiently common that they count as part of the normal recruitment process. A second interview should remain fairly short, although you might ask your nanny to play with your children or join in the evening routine.

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Settling in a temporary nanny

You might have a temporary nanny to cover a gap in childcare, to fill in for your usual nanny, or over a period like the school summer holidays. Whatever the reason you’re likely to be able to spend less time showing her the ropes and letting her bed in, and you need to be quicker to correct anything that looks like it’s going downhill.

Most temporary nannies are very flexible and adaptable people. Nannies who temp long term often choose to do so because they enjoy the variety temping brings and are happy to do things your way. They are experienced enough to get on with the job and quickly develop a good relationship with their new charges. They are also a dab hand at asking the right questions to get the information they need from you, which means you don’t have to tell them absolutely everything about your life in case it’s relevant.

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Pensions for nannies

There’s been a lot of buzz in the news lately about new pension rules for nannies that are coming in on June 1. Here’s a quick FAQ!

Is it coming in for everyone on June 1?

No. When it comes in for you will depend on your staging date. You can find that out by entering your PAYE reference on the Pensions Regulator website. Nannies can find a PAYE reference on their P60.

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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.

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Spotlight on References

Taking up references on a nanny is a vital part of the recruitment process. Parents should always telephone the contacts provided themselves, rather than relying on a third party to do it for them, especially after the tragedy that led to a lawsuit being filed against an American website supposedly offering a reference checking service. References allow previous employers to share their experience of employing a particular nanny and can help you discover both their strengths and the potential pitfalls.

Try to find a time when and the person you are talking to will be free from interruptions. Prepare your questions in advance and pay attention to both what they say and their tone of voice. If you sense that they are hesitating or might be hiding something that could be a bad sign. Keep your questions open ended and allow the other person space to reply in their own time.

Remember to ask questions that are specific to your situation. If you need a nanny to do overnight care then ask whether this what part of their previous job and how they coped. Written references will seldom give you all the details that you need, another reason why a personal conversation with ex-employers is so important.
At the end of your nanny’s time with you don’t forget to write them a reference of your own!

Please note that we at Nannyjob.co.uk do not at any point check the identity or references of jobseekers and advise you to double check references which have been taken up by a nanny agency on your behalf.

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.

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.