Nanny pay advice, please

[srisky]

This has probably be done to death (so apologies) bit I would be grateful for any advice or a point in the right direction. Our situation is as follows:

Before I went on mat leave second time round we had a friend who was a nursery carer who collected our daughter from nursery, brought her home, fed, bathed her etc. Our friend now has a baby herself and is considering nannying so she can look after her son simultaneously.

We will need a nanny 3 days/wk from 7.30am to 7/7.30pm to:

- drop our daughter at Herne Hill kindergarten at 8.45 am & collect at 3pm

- provide full day care for our daughter during holidays (3 days/wk)

- look after our son who will be 18 months

This will be nanny share of sorts as she will be looking after her son (who will 11 months) but the care will be based at our home on those days.

How is the cost divided? Trying to work it out is making my head hurt and my kids give me no thinking time, aaargh! Is there someone out there who calculates these things?

Thanks!

[greenwater]

Just consider it on an hourly basis. I think rates for a good nanny are ?10/hour for single child and ?12/hour for two kids. You are asking for a long day so I think it's fair to pay higher end. That's what we paid our nanny. I don't know what nannies charge when they bring their own child to work but I would guess it's less although I wouldn't say half. Good luck!

[LalKJ]

Just to add to greenwater's message, it's not usually ?10 for one child and ?12 for 2, it's more often ?10 (NET!) for sole family care and ?12 if doing a nanny share. We do a nanny share, and at the times the nanny is looking after the children from both familiies her hourly rate is ?12 but when she just had the children from one family it's ?10 - this is whether she is with our family (2 children) or the other family (just the one child). It's also worth bearing in mind that these amounts are NET. On top of that you will have to pay the nanny's tax and national insurance and also employers' national insurance which can really mount up. It works out about ?13 and ?16 per hour gross respectively that you need to account for plus, if the nanny is working full time, approx another ?1000 per month on employers' national insurance. As greenwater says, we just worked it out on a strict hourly basis and split the costs by the ratio of hours she was with one or both families.

I would say that it is totally fair for the hourly rate to be split in half if she is bringing her own child, or as you have 2 perhaps not quite in half, say 60:40. In addition, I presume she would be based at your house, so you would continue to pay all the food for your children, the nanny and her children which is an additional benefit to her. She should fund any playgroups etc. for her own child. the only downside I could see to this is that if she doesn't finish with you until 7:30 she then has to get home and put her own child to bed later, so depending on where she lives, she may see this relatively late finish time as detrimental to her and want the ratio changed a bit more in her favour - but by the same token, with this arrangement she gets to spend the whole day with her own son - no the luxury most of us have!

good luck.

[devsdev]

Nannies who bring their own children to work will usually not work for just ?6 an hour (this is below the minimum wage in any case). The lowest really would be ?7 net, some would ask for ?8 net. Agree that she should pay for her own child at playgroups etc., but her son would eat with your children and share the food prepared for them (which she would cook/freeze as well if you want). This kind of a share is really convenient (since you don't have to coordinate with another family or leave your house) and it's great for your son to have another child to play with while your daughter is at nursery.

On how you decide on pay - speak to a company like Nannypaye about whether to agree a gross hourly figure rather than a net figure as with the latter you're unsure how much you will ultimately be paying out (the taxes and NI costs that are paid quarterly depend on your nanny's tax code). Not sure exactly how it works as we have a net amount agreed.

[Audrey]

Funny, I thought it was ?7 ph if the nanny was bringing own child - does the fact that it's a net rate not bring it above minimum wage? Is minimum wage gross? (Genuine question).

Anyway if you go on childcare.co.uk and search on quoting rates there you'll get an idea of market rates.

[LondonMix]

6 GBP net is NOT below the minimum wage. You aren't comparing apples with apples...

devsdev Wrote:

-------------------------------------------------------

> Nannies who bring their own children to work will

> usually not work for just ?6 an hour (this is

> below the minimum wage in any case). The lowest

> really would be ?7 net, some would ask for ?8 net.

> Agree that she should pay for her own child at

> playgroups etc., but her son would eat with your

> children and share the food prepared for them

> (which she would cook/freeze as well if you want).

> This kind of a share is really convenient (since

> you don't have to coordinate with another family

> or leave your house) and it's great for your son

> to have another child to play with while your

> daughter is at nursery.

>

> On how you decide on pay - speak to a company like

> Nannypaye about whether to agree a gross hourly

> figure rather than a net figure as with the latter

> you're unsure how much you will ultimately be

> paying out (the taxes and NI costs that are paid

> quarterly depend on your nanny's tax code). Not

> sure exactly how it works as we have a net amount

> agreed.

[minder]

srisky, if your friend is now considering becoming a nanny (with or without her own child)? and she can fulfil all your criteria I suppose it must be a dilemma about payment etc. I suppose you have to factor in the time she has to leave her own home? I don't know?

Londonmix, I thought ?6.31 was the national minimum wage per hour for over 21s?

Please explain as my 21 year old has just started a part-time job (in between university) and they're not paying him ?6.31. That 31p can make a difference!

[LondonMix]

Minder, the minimum wage is a gross figure, meaning its what you earn before tax is deducted. Nanny pay is oddly quoted net- i.e. its the amount the any earns after tax and national insurance is deducted. A net wage of 6GBP per hour is equivalent to about 7.25 GBP per hour gross full time.

You can't compare net nanny wages to the way most people earn / talk about pay. In fact, I can't think of any other industry besides nannying where pay is typically quoted net rather than gross.

[srisky]

Thank you all for your answers and PMs - very helpful & food for thought.

[devsdev]

Sorry if that was wrong information - I was looking at the government page on minimum wage to calculate it. Can you believe that nowhere on the page does it clarify whether minimum wage is net or gross??? With the calculator it seemed to suggest ?6 was net rather than gross...but I guess that might be wrong.

[EDNA]

Useful calculators gross v net pay can be found at www.nannytax.co.uk

[Chokko]

srisky Wrote:

-------------------------------------------------------

> This has probably be done to death (so apologies)

> bit I would be grateful for any advice or a point

> in the right direction. Our situation is as

> here tax advisor near me

http://yourbooksontime.com/tax-advisors

>

> Before I went on mat leave second time round we

> had a friend who was a nursery carer who collected

> our daughter from nursery, brought her home, fed,

> bathed her etc. Our friend now has a baby herself

> and is considering nannying so she can look after

> her son simultaneously.

> We will need a nanny 3 days/wk from 7.30am to

> 7/7.30pm to:

> - drop our daughter at Herne Hill kindergarten

> at 8.45 am & collect at 3pm

> - provide full day care for our daughter during

> holidays (3 days/wk)

> - look after our son who will be 18 months

>

> This will be nanny share of sorts as she will be

> looking after her son (who will 11 months) but the

> care will be based at our home on those days.

>

> How is the cost divided? Trying to work it out is

> making my head hurt and my kids give me no

> thinking time, aaargh! Is there someone out there

> who calculates these things?

>

> Thanks!

how did you solve the issue?