Nanny Leaving

Our recommended partners at www.PayrollForNannies.co.uk provide payroll advice for
parents and have created this content.
Parents, as an employer it is your responsibility to inform HMRC when nanny leaves your
employment, this is done by an FPS submission via payroll software.
If you use payroll4nannies.co.uk we can handle this for you. The main problem we have
when nanny leaves, is that we get notified late that nanny has left. This means that we
submit to HMRC that nanny has been paid for a month when in fact she did not. This can be
corrected, but can lead to issues with nanny’s tax code in the meantime. The same can be
said for pensions. If we have not been told nanny has left, we will submit amounts to HMRC.
This can also be fixed but we will need to request the money back from the pension provider.
If nanny is leaving, you need to see if she is owed any holiday pay which she has accrued
and not taken, this would be paid in her final payslip. It also occurs nanny has taken more
than her holiday allowance, so the overpaid holiday needs to be deducted in her final
payslip.
It is prudent to detail in nanny’s contract that any holiday taken over her allowance upon
leaving will be deducted from her final payslip.
Once nanny’s leave date has been confirmed, you will need to confirm if any holiday pay is
owed or needs to be deducted, redundancy due or payment in lieu due, once confirmed
payslip would be finalised and a P45 can then be processed and submitted to HMRC.

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?

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

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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Redundancy Advice for Parents & Nannies

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If a parent was to make nanny redundant the nanny would be entitled to redundancy pay after 2 years of complete service. The parent should have at least one meeting with the nanny to discuss redundancy and if there are any alternative roles – part-time nanny/housekeeper or going from live-in nanny to live-out. A 4-week trial period at the alternative role must be offered. A nanny can tell the parent that the job is not suitable within these 4-weeks, and this will not affect the nanny’s right to statutory redundancy.

If a nanny unreasonably turns down a suitable alternative to the current job, they may lose the right to statutory redundancy.

If redundancy is the only option, a parent must give the correct notice period and pay: Continue reading “Redundancy Advice for Parents & Nannies”

HMRC Payment Deadlines

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In order to avoid penalties and interest, it is important to make sure you pay HMRC on time for tax, employee and employer national insurance and student loan deductions.

Here is a note of each quarter’s payment and payment deadlines:

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2019-2020 National Insurance Changes

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

Parents, as an employer of a nanny, you will need to pay HMRC employee and employer Class 1 National Insurance based on your nanny’s wage.

Employee national insurance is deducted from your nanny’s gross salary, whereas employer’s National Insurance is an additional cost on top of your nanny’s gross salary paid by you, the employer.

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