Can I pay my nanny in cash Post Reply

[workinggirl]

We are looking to have our old nanny come back to work with us. I am going to be required to go into the office on a part time basis in the next month or so and then full time at a later date. Lockdown has been quite tough financially and doing the sums we really can only afford to have her back if we pay her in cash. We have always been good at NI and PAYE but I am aware that many are not. I guess I wanted to see how widespread this is? Friends I've mentioned it to range from 'do what you have to do' through to 'you will be breaking the law' . Would anyone be happy to share how they pay their nanny ?
Many thanks.

[kristina19]

Are you going to get cash in hand from your employer?

[Nanny2020ldn]

No.
Its,illegal

Treat others how,you would wish to be treated etc

Treat them as the professional they are

[coldatchristmas]

Sorry, but no, this isn't ok? I think that if you can afford to have a nanny then you can afford to do right by her and pay her NI etc.

[Penguin80]

I am a nanny, and as others have said yes it is illegal. In fact if you were to be caught you and your nanny can be fined by the government.  Instead you could look into them becoming Ofsted registered, if they are prepared to.  It would then mean that you could use childcare vouchers if you eligible provided by the government to help pay for them.
https://www.gov.uk/help-with-childcare-costs
 

[ceecee12]

I am glad you asked. You know full well what your duties are and should do them to the fullest. However as the previous poster pointed out then there are aspects of childcare you can use eg tax free childcare, childcare vouchers as an alternative way to pay.

[KasiaT]

You know well that what you are conteplating doing is illegal and even if many people will say “ we do it” it will not make it legal and ok. It’s like a bank robber asking other bank robbers if it’s ok to rob banks.
I am sorry that your financial situation is tough and I understand where you are coming from but that still does not make paying your nanny in cash a legal practise. Same as businesses receiving cash and not charging VAT. You may get away with it, and likely would - but you should not be seeking validation of an illegal practise via “others do it”.
So you just need to make your own decision and be ready to accept any potential consequences.

[IrenaP]

100% agree with what others are saying. It is illegal.

Have you looked at other forms of childcare? I found childminders are more affordable and flexible than having a nanny. They need to abide by Ofsted. And you can use tax free childcare which means you’ll get a 20% deduction if you and your other half are in work.

[inalondon]

It’s sad that some people still think paying their employees’ tax & NI is optional and “very good”. No, it’s actually illegal not to. Your nanny might feel like they have to go along with it out of loyalty to your family and miss out on pension contributions and mess up their chances to get a mortgage just to mention a few things. If you really can’t afford to pay their original salary, try offering your nanny reduced hours or look into alternative childcare arrangements, don’t break the law.

[janee]

Workinggirl:  Pay up - treat your nanny with respect.  Why should she lose the benefits because you are selfish.  I am retired and on a pension.  I am still paying tax and seriously object to my taxes going to support anything like this.  As a parent, you will be making much more use of my taxes than I am and yet still think it is okay to ask the question.  Shame on you.  

[Jonny Dyson Property Consultants]

Putting the illegality to the side for a moment, there is also the matter of supporting the government - the costs of the pandemic will be with us for years, probably decades, so frankly we should all be doing all that we can to play fair and pay our way via taxes.

[cathlondon]

You can’t pay cash. It’s really depriving your nanny from being recognised as an employee with rights: residency/nhs access, paid leave, pension, sick leave, maternity pay....
it’s so not in line with how society is evolving, I would not even consider.
If the cost of having a nanny is an issue then you can look to share with another family.

[SouthLondonDaddy]

What is the point of this question? What do you want to be told, really?

It is not to ask whether paying cash with no tax and no NI is legal - you are well aware it is not.

Is it to ease your conscience? Would you feel less guilty if you were told that, I don't know, 75% of families pay their nannies in cash? What is the threshold that gets rid of your sense of guilt? Would you feel guilty if that percentage were 10%?

Is it to try and estimate the odds of getting caught? Do you want to hear lots of replies along the lines of "we have always done it and never got caught, so don't worry"?

Is it that you want to be told "do what you have to, you did everything by the book when you could afford it, so don't fee bad if now you can't"?


 

[Cathy2021]

I honestly don’t understand posting this. Are you really going to decide whether to break the law or not (never mind the moral considerations of depriving your nanny of employment protections, future pension etc) on the basis of the opinions of strangers on a local forum? Of course you shouldn’t. This isn’t giving £20 cash to an odd job person who removes some garden rubbish for you once. This is about the person you’d entrust your child to on a regular basis.

I’m genuinely sorry you’re finding it hard to make ends meet. It’s been a hard year and many of us are finding things tough. But breaking the law isn’t the answer and I’m sure you know that already.

[mumblejumble]

We recently employed a nanny and I was quite staggered by the number of candidates that requested to be paid in cash "I'm self employed" or tried to cut some kind of part cash / part paye deal with us, with the excuse of "my previous employer did this".

Their reason being so that they can retain access to certain allowances / benefits / student financing etc.
We did things legally and it meant that we turned down nanny candidates who were amazing on paper, but at the same time, we did not want someone willing to commit benefit fraud looking after our child.
(I do also appreciate that SW London may not be easy on a single nanny salary, but if NHS nurses can pay their taxes, a nanny should too).