Hiring a Nanny

A nanny can be a great addition to your family but if this is your first time, it can seem daunting! Here at Dream Nannies we make the process safe and easy for you, all of our Nannies are thoroughly screened, interviewed, reference checked and matched to suit your family requirements. No stone is left unturned as we know that your nanny will play a pivotal role in your family!

We are on hand every step of the way and our partners, Nanny Tax also offer great advice on how to employ a Nanny and guide you through the things you need to consider when taking on a nanny.

To help families decide whether a Nanny is the best option, here is some useful information and costs to be taken in consideration when hiring a Nanny.

Dream Nannies are a referral agency only and do not employ any Nannies or Au Pairs. As a family, when you employ a Nanny, you become the Employer and we recommend that you seek advice regarding your responsibilities to ensure you pay your nanny correctly.

Nannies , Mothers Helps & some Au Pairs who provide sole charge care to children , are considered employees, and families are considered employers.

Costs to employ a nanny include:

Tax payments, National Insurance, Employers Liability Insurance, Payroll costs

To make life easier for our families we have partnered with a couple of the leading Payroll & Tax Companies who specialise in Nanny Employment, who offer a range of services to ensure you are employing your nanny correctly and can manage all of this for you.

www.nannypaye.co.uk

www.nannytax.co.uk 

Other costs/ considerations:

Paying your Nanny

When paying your nanny, it can be a good idea to set this as a gross rate for these reasons: 

• Employers can budget for hiring a nanny more effectively as a gross salary includes tax, NI and pensions. When a net salary is agreed, the employer may end up paying far more than they anticipated.
• Gross also protects the employer’s costs. If the nanny is on a net salary, the employer is liable to cover any of the nanny’s unpaid tax from previous jobs, child maintenance or court order payments and student loan.
• Employers who have contracted their nanny’s salary in net terms will also have to pay the nanny’s pension contributions. When a gross salary is agreed the employer will only pay theirs.
• Agreeing a gross salary will make an employer’s legal duties much simpler.
• HMRC only talk in gross terms so a net salary may cause complications when operating a PAYE scheme and declaring tax

Car Allowance

If a car is provided for the use of the nanny, it is the employer’s responsibility to provide full insurance coverage. If the nanny is to use her own vehicle as a condition of employment, families usually pay mileage rates .The type of vehicle the nanny drives determines the exact mileage rate. The UK Government provides up to date information on how to calculate Mileage , please follow link below:

 https://www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances

Pension

The government has introduced legislation that means all employers are to provide an “auto enrolment” pension for their employee/s. This will include nanny employers in the near future as its being phased in gradually. For the latest information regarding pensions, please follow link below:

 https://www.gov.uk/workplace-pensions

Insurance

Employers Liability Insurance is a legal requirements for all nanny employers. You may also choose for your nanny to have Nanny Public Liability Insurance.

Nanny Insurance

You may also wish that your nanny take out Nanny Insurance. Nanny insurance is a public liability insurance to protect you should your nanny have an accident with your child/children. It covers medical procedures and special care that is not covered under Private Health Insurance. It also covers loss of wages and compensation.

Our Payroll Partners can provide both insurances and all the advice you need, however there are lots of companies who provide Nanny insurance for both the employer and nanny so it’s worth shopping around!

https://www.nannyinsure.co.uk/

BAPN are an umbrella organisation who set the standard for Nannies in the UK, their website is packed with useful information and is the No 1 go to association for all your nanny needs:

 https://www.bapn.org.uk/

We highly recommend a contract agreement which highlights both parties’ expectations of the following:

• Weekly or hourly pay rate, car allowance if applicable,
• Tax, pension and insurance,
• Days, hours of work – start and finish times,
• Specific duties and any additional duties,
• Overtime rates for working outside set time,
• Annual recreation leave, sick leave, special leave, pay on public holidays etc.
• Conditions of salary review,
• Conditions of termination.

Other Benefits

Look at other benefits to make the job as attractive and enjoyable as possible:

• Good living quarters (if applicable) supply good furnishings TV, Mobile Phone Package
• Use of a car
• Occasional late starts and early finishes
• Health cover
• Bonuses. Can include night out, movie tickets, pampering package, weekend away

If your nanny is a trusted and valued employee whom you wish to retain, then these incentives can go a long way in keeping a good nanny with your family for a long time.

Communication

Many Nannies cite poor communication as a reason for leaving a post, so take time at the beginning and the end of each day to discuss the children. If this isn’t possible, introduce a diary system which allows the nanny to record the events of the day including appointments, meals, social outings, sleep times and medications as well as the child’s developmental steps.

Consider a weekly review which involves an informal discussion allowing both parties to give and receive feedback.

Provide positive feedback and praise for a job well done; conversely, if you are unhappy in any way with the nannies performance, discuss this immediately.

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