Nanny Tax - Taxation and HM Revenue & Custom
The following table shows what the total cost of a nanny is once all the tax has been paid. These figures are based on Tax Code 543L for the the year 2008/2009. The Calculations below are based on the Gross Annual Salary and are a guide only. They are based on the single persons tax allowance starting at £105 and the employees N.I. threshold of £105 per week.
tax2008_2009

HOLIDAY PAY

All nannies are entitled to holiday pay.

Holiday entitlement begins from the first day of employment but cannot be taken until it has been accrued (e.g. one day’s holiday after 13 day’s work). Part time employees are entitled to 4.8 weeks of the hours they work. You can agree with your nanny at the start of the employment that they take some of their holiday when you take your own annual leave.

New Holiday Legislation - The Working Time (Amendment) Regulations 2007

In brief the minimum holiday entitlement has increased from 4 weeks per year to 4.8 weeks per year from 1st October 2007 and will increase again on 1st April 2009 to 5.6 weeks per year. All employees are entitled to 4.8 weeks holiday from 1st October 2007 i.e. Employees’ that work;

  • 1 day get 4.8 days holiday per year
  • 2 days get 9.6 days holiday per year
  • 3 days get 14.4 days holiday per year
  • 4 days get 19.2 days holiday per year
  • 5 days get 24 day holiday per year.


All employees are entitled to 5.6 weeks holiday from 1st April 2009 i.e. Employees’ that work;

  • 1 day get 5.6 days holiday per year
  • 2 days get 11.2 days holiday per year
  • 3 days get 16.8 days holiday per year
  • 4 days get 22.4 days holiday per year
  • 5 days get 28 days holiday per year.


Whether or not this additional leave is taken on a Bank Holiday is up to individual employers to agree with their workers. Employers may choose to offer more holiday than this.

The National Minimum Wage as of 1st October 2007 is: £5.52 Gross per hour the main rate for workers aged 22 and over. £4.60 Gross per hour the development rate for 18-21 year olds. £3.40 Gross per hour the development rate for 16-17 year olds. Nannies that live as part of the family household and do not have separate accommodation are excluded from the NMW. For employers who provide separate accommodation for their nannies there is an allowance of £30.10 Gross per week (£4.30 per day) this can be offset against the NMW hourly rate. HM Revenue & Customs Mileage Allowance for cars is currently 40p per mile for the first 10,000 miles then 25p per mile thereafter.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Nanny Tax - Taxation and HM Revenue & Custom

Tax Calculator 2008/2009 Based on Tax Code BR
The Calculations below are a guide only. They are based on no tax allowance
– i.e. for when a nanny is placed in a second job.

tax

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