What's the total cost of a nanny? Post Reply

[IsabelleB]

Hello

I would like to have an estimate for the total cost for a live-out nanny, say 8am to 7pm Monday to Friday, to look after a 4 months old baby and a 20 months toddler (will probably arrive around 6:30pm most days). I live in Balham and would like a dynamic nanny who goes to playgoup/park/library every day, who speaks very well English and who cooks the food for the children.
I understand that in addition to the net wage, I will have to pay for taxes and NI, except if she is self-employed. Can anyone give me an estimate about how much I should expect to pay in total? Do you think I can have a shared nanny given that I have 2 children?
Thanks a lot for your help.
Note: this is not an ad for a nanny as I am not looking for now, I just want more info.

[Calaya]

it should be around £3200/month incl taxes assuming she charges £10/hour.
There should be a tax calculator on nanny paye.
Good luck!

[lalectrice]

I think I'm right in saying that if you set the nanny's hours then she cannot legally be self-employed - seem to remember reading that on one of the nanny tax agency websites.

[BalhamMumWorkingFT]

Legally, a nanny cannot be self employed; however, you could agree a gross weekly wage and take her tax from that. For example, Agree £800 a week and take her taxes and NI out. This is how most employers work outside home services.

You should be paying tax and NI on Nannies earning more than 9K a year. For two young kids, I would find £8-10 an hour very reasonable. You can also make it more worth her while by paying expenses. These are taxed differently...

Let say you pay net £640 a week (about £10); with tax and NI it would be gross £979 weekly.

Don't forget, you probably will spend an extra 20-40 a week on expenses... playgroups, coffees, etc... Plus you'll have to feed everyone and keep the heat on in the house, lights, etc... Things like that slowly add up.

Good Luck.

[IsabelleB]

Thanks a lot for your comments... but that's really worrying... £3200 or £4300 per month seems really a lot... has anyone a different view/experience? do you think I can consider a nanny share if I have a 4 months baby and a 20 months toddler, or having a 3rd child to look after would be too much for the nanny?

[northside_mum]

Hi

I had the very same question as you a few months ago and several helpful responses were posted so you may want to have a look.
http://www.nappyvalleynet.com/mums/view ... 857#p52857
The £4,300pm does sound high unless this is a nannyshare rate.

Good luck!

[jo jo]

If you use 'paye nannies' they will do the breakdown with in terms ofnet& gross and what you gave to do. we use them and they offer a great service which eould free to gain the amount in which you will need to pay. give them scenarios based on days/hrs and how much you are willing to pay.

[Goldhawk]

http://www.mranchovy.com/calc/paye201314

Mr Anchovy's tax calc is useful for this

For a 55 hr week at £10 per hr net = £3,518 pcm cost to employer

[momtomum]

We were shocked by the cost of childcare too. Oh my goodness...

But I found a job I really wanted to take, so we figured out something that worked. I only go into the office 4 days a week, so we only have to pay for 4. Then my husband and I split hours a bit so he can come home every day by about 4:30. We found a nanny who has her own child and who was happy to work 4 shorter days and get home in time to make dinner at home with her own family. We pay her 60/day plus tax and NI. We also give her paid holiday, sick time, cash for activities, food when she's working. We pay her a higher rate if we're late or need extra babysitting.

We have 4 kids, but 3 of them are in school 5 days a week. During school holidays, we try to find activities/camps for some of the kids so she doesn't have all 5 too much of the time. She's incredibly capable and we're very, very happy.

I think it's a good deal all around as she gets to be with her baby and work and we get great childcare.

[CitySlicker]

So you'd have to earn around £70k a year just to pay nannies fees? Does anyone else not think this is absolutely ludicrous? Do you really mean to say that every women on nappey valley that has a nanny earls more than that?

[BalhamMumWorkingFT]

City Slicker...For a good 12-18 months ALL my salary went to kids care and only my bonus was something I could use to get something for myself.

We squeezed in a au pair to make this affordable. £80 a week plus food and lodging. That worked great but someone does live with you... But not everyone can do this.

I think that a salary made up of a wage and expenses per mumtomum... makes it better too.

[shellbell83]

Yep.. Its expensive..

Im in a nanny share.. 3 days a week 7.30- 6.30 It costs £900 a month per family then 20% tax and insurance on top ...

It ends up being about £1100 per family a month.. (For only 3 days a week)

Plus on top of that youve got to consider food and activities for the kids, and kitty money!!!

So on average around £1300 per family....



Then on top of that

[manuellee]

For a full time nanny working 50 hours a week you are looking to pay about £38000 a year( salary, tax and NI)Thats not including extras like kitty money etc..

[Greycoat Childcare]

Hi there,

As an agency who places Nannies in SW London I can say that for the role that you have outlined you would look at paying somewhere between £34,500 and £38,500 gross per annum in order to find an excellent Nanny with experience and references. On top of this there would also be Employer's National Insurance (13.8%) making the total cost to you obviously more than the Nanny's Salary. A payroll bureau such as Nannytax would be able to help you with all tax related questions.

For full-time positions we would always encourage you to agree a gross annual salary so that you are covered for any issues in their tax code. Also it is only part-time salaries that are paid by the hour because for a full-time employee you can expect some level of flexibility within the hours.

Hope that helps!

Stephanie Rough
Director, Greycoat Childcare & Education