Nanny In South West London: How To Pay Your Nanny

Nanny in South West London is a job that often has an element of vocation about it. Nonetheless, it still requires the employer (the parents) to pay the employee (the nanny). The idea of paying someone may be a daunting one for those who have never had to do so before. What needs to be done?

Tax is the issue that is the most concerning and worrying for many parents when they first hire a nanny in London. There can be major implications when it comes to getting this right or wrong, and it is often a rather complicated calculation. All employers are required to operate a pay as you earn (PAYE) scheme for their employees. This means that the tax and National Insurance the employee owes should be taken at source (i.e. at the time of payment) and paid to HMRC on the employee’s behalf. However, remember that tax won’t be due if you pay the nanny less than £112 gross per week, as long as they don’t have another job or a taxable income (a pension for example). Paying between £112 and £156 per week without any other income is also tax-free, but it is advisable to register with HMRC anyway, as at this point the employee becomes entitled to state benefits and pensions. Any more than £156 gross per week means that tax will be due. And of course, if they have another job or a pension, you will need to pay their tax because their tax-free allowance will already have been taken up. Often, a nanny agency London will help or even take care of this for you.

If you want to employ a nanny in South West London, Nationwide Nannies Ltd can help. We have been supplying high-quality nannies for many years, and our website (http://www.nationwidenannies.org) details further information. Please don’t hesitate to get in touch on 0203 621 2931 or email info@nationwidenannies.org to speak to us.