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Hi all,


We are in the process of revising our nanny contract to accommodate a family share, however it's so complex working out the tax. We are thinking it would be easier to ask her to become self employed and we pay her a gross salary instead of a net salary (and then pay her tax separately).


Does anyone have a contract that is for a nanny share, in which the nanny is self employed, that they could share with us to use as a template?


We would be so grateful!


Many thanks

Difficult to envisage a situation in which an employment tribunal would find a nanny was self employed unless you genuinely allowed them to send anyone to do the job. Tread carefully with this otherwise you could end up in hot water because of the employment protection the nanny loses by agreeing that status.


The nanny payroll companies can probably help.

Yes indeed though she said she has done this before with a family. But of course we wouldn't want her to lose holidays and sick pay. It's more just because it's easier to pay the tax this way. But yes, will give our many tax company a call.


Thanks

Any of the nanny tax companies will work out a share for you and split the tax etc. We have a 3 day share plus a 2 day sole charge and it took some time working out the numbers but it was all done for us. Plus they provide us with our quarterly tax bill which we pay directly to HMRC and if there are any problems with HMRC (which we had once) the tax company sorts it out which is a bonus. We use NannyPaye but there are several options.
You need to all employ her separately. And the tax code is either split or with the person with most hours. Otherwise it is definitely illegal unless her hours are truly irregular and changeable. Would always agree a gross salary in these circumstances otherwise with a net salary your contribution will go up and down

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