Salary Guide
The average cost for a nanny in the Essex area is around £10- £12 per hour gross depending on the nannies experience and your requirements. Most nannies will ask what their net pay would be as they still talk in net terms. However we recommend you agree with your nanny a gross salary in order to avoid unexpected costs at a later date.
Nanny Tax
Becoming an employer of a nanny for the first time can be a bit overwhelming. As a nanny employer, you are responsible for pay rolling your nanny and ensuring that the relevant deductions are made from your nanny’s gross salary and paid to HMRC. There are payroll companies that can offer you this service.
Handpicked Nannies recommend the following payroll companies:
https://www.nannymatters.co.uk/
They are extremely helpful and can give you piece of mind that you have everything covered in terms of making sure your nanny is paid on time and you have covered their NI and tax. As part of their payroll package they will also do the following:
- Register you as an employer with HMRC
- Keep complete payroll records
- Provide payslips for your nanny
- Send you a quarterly summary of tax and NI due to HMRC
- Process any P45s
- Guide you through pay related issues
- Give employment law advice
Pension
If you employ a nanny between the age of 22 and state retirement age and earns more than £10k a year then you must set up a pension scheme for them. You will make a contribution towards the pension scheme each month based on your nanny’s gross salary. www.nestpensions.org.uk/schemeweb/nest.html