New campaign urging nanny employers not to neglect their responsibilities!
A new national advertising campaign has been launched by The Department for Work and Pensions and The Pensions Regulator to raise awareness of automatic enrolment among small and micro employers and employees.
While automatic enrolment into workplace pensions has been rolling out across the UK since 2012, it is only now that 1.8 million small and micro employers are being required to take action to help their staff to save for later life.
Follow the link on our Twitter post below to access more nanny pension information:
Start with Fulham Nannies℠ Today!
How to pay your Nanny
When you hire a nanny in your home you become an employer
So you will have to pay tax and National Insurance on behalf of your nanny. Calculating correct nanny taxes can be stressful and confusing to parents as well as time-consuming.
It is possible to do this yourself, but many people choose to use a payroll service to pay their nanny.
Way2paye is a recognised payroll company that offers payroll services to comply with HM Revenue and Customs requirements. With over 17 years experience in commercial payroll and over 15 years experience in nanny payroll providing parents and companies with help and advice on payroll issues.
If you would like to find out more please visit their website at www.way2paye.co.uk
Established in 1993, Nannytax is the original, dependable nanny payroll expert and today's UK market leader. They offer a complete service to nannies and families, providing everything needed to meet HMRC requirements, making the whole process simple and stress free!
If you would like to find out more please visit their website at www.nannytax.co.uk
Advice from Fulham Nannies℠ London nanny agency
Many parents are still unaware about the introduction of the nanny pension auto-enrolment which is presently being phased in. Nannies who are aged between 22 and the State Pension Age earning above the current £10,000 Tax Free Allowance will need to be enrolled.
Nannies are employed workers so of course they should be entitled to the benefits that all other employees receive. However, families who hire a nanny are micro employers, and not huge employers or even small businesses. This news is likely to be unwelcome by some nanny employers, but it need not be as much of an issue as it may seem at first glance.
Nannytax are probably the biggest and most well-known payroll company who deal with all matters concerning nannies taxation, and they are well prepared to support our families through these changes, give sound advice and take care of all the required paperwork for parents who have hired a nanny or are considering hiring a nanny.
There is a lot that can be done to help nanny employers manage these requirements. For instance, the percentage contribution doesn't have to be paid on the whole salary. It can be paid on something called 'Qualifying Earnings' (sometimes called 'Banded Earnings') which will be less expensive for the employer.
Once again we see another reason to agree a Gross salary with your nanny as opposed to a net salary according to Nannytax. However, if you have agreed a Net salary with your nanny you will be responsible for paying in both the employer contribution and the nanny contribution. That means you would eventually be paying an extra 7% of your nannies salary!
For some nanny employers an extra £350 to £500 per annum may not be a show-stopper, but for others who have perhaps only managed to afford the costs of hiring a nanny through a combination of nanny sharing and Ofsted vouchers, this may be more of a concern.
Nonetheless, if you're happy with the flexible personal service through having a nanny and it's worked well for you, then this need not be a reason to give up. At Fulham Nannies℠ we tend to suggest talking to a reputable payroll company, such as NannyTax, and find out what you can do to comply and lessen any impact. A good nanny is an investment and soon nanny pensions will be as familiar as, say, statutory holiday entitlement for nannies, paying their tax, and using a work contract. The alternative - not paying into the nannies pension fund, carries penalties that will cost more than the pension contribution percentage, and devalues your nanny.Daily Nanny (Live out Nanny) Live in Nanny Temporary Nanny Permanent Nanny Full or Part time Nanny Maternity Nurses