Yes, it is a good idea to keep your financial affairs separate by both sets of parents becoming registered small employers with HMRC.
Nannywage Ltd registers you with HMRC as part of our service.
Nanny Sharing
Nanny sharing provides a top-quality form of childcare at an affordable price. At Nannywage Ltd, we ensure your nanny experience is as smooth and stress-free as possible. From handling tax code splits to managing all your HMRC interactions, you can enjoy valuable time with your family whilst we handle all the logistics.
Simplifying Your Nanny Share: Expert Tax Code Management and HMRC Support
At Nannywage, we ensure your nanny-sharing experience is stress-free by handling all your tax-related aspects that come with nanny-sharing. Whether that’s handling your tax code split with HMRC or managing all your interactions with HMRC, we focus on the logistics so you can spend quality time with your family. Here’s how we can support you at Nannywage:
- Tax Code Split with HMRC ✓ At Nannywage, we handle the entire process of setting up the tax code split with HMRC on behalf of all employers involved in a nanny share arrangement. The only action you need to take is to complete our simple nanny-sharing questionnaire as we require the details of the other employer/s for the tax code split.
- Comprehensive HMRC Management ✓ Once we have received your information, we take care of all your interactions with HMRC on your behalf.
- Employer File Management ✓ When we receive confirmation of the new tax code from HMRC, we will immediately update your employer file and make the necessary tax adjustments for your nanny. This ensures the correct amount of tax is being deducted.
What is a Nanny Share?
A nanny share is a childcare arrangement between two or more families where you split the cost of a nanny. This could look like:
- The nanny looks after the children from both families at the same time.
- The nanny operates on a rotation basis. For example, the nanny could look after your child on certain days of the week and look after the other family’s child on different days.
What are the Benefits of Nanny Sharing?
Employing a full-time nanny can be an efficient solution to childcare but some families may only need childcare for part of the week. Plus, many families may struggle with the cost of childcare and to afford a full-time nanny. Nanny sharing has become a popular childcare option as it provides a cost-effective and flexible childcare solution. Nanny sharing provides numerous benefits including:
✓ Cost-effective childcare – Nanny sharing offers an affordable option for childcare. Instead of hiring a nanny full-time, you can split the cost with another family, reducing the financial burden of childcare costs.
✓ Professional Nanny – Families in nanny shares can benefit from a professional nanny who will provide a high level of service. Your child will receive individual attention in a comfortable setting at home.
✓ Flexible Scheduling – Whether it’s for part-time hours, specific days of the week, or rotating schedules, nanny sharing offers endless flexibility opportunities that match your busy family schedule.
✓ Social Skills – Sharing a nanny with another family allows valuable social benefits for your child who will be able to socialise with the other families children. This further enhances their social development skills.
Why Choose Our Nanny-Sharing Service?
With over 20 years of experience, we offer expert support and advice for nanny-sharing families. From offering simplified tax code management to offering our customers separate employer PAYE schemes, we offer all tax-related aspects of nanny sharing whilst staying compliant with HMRC regulations. Plus, subscribers receive a free employment contract for their nanny if necessary.
- 20+ Years of Experience ✓ At Nannywage, we have 20+ years of experience in nanny payroll services, meaning we have gathered valuable expertise and insights to support nanny-sharing families.
- Simplified Tax Code Management ✓ At Nannywage, we liaise directly with HMRC to set up and manage your nanny’s tax code split. This allows you to receive peace of mind whilst we handle all tax-related aspects of nanny sharing.
- Separate Employer PAYE Schemes ✓ Each family registers as a separate employer with HMRC, allowing for independent tax and NIC management. This setup simplifies payroll processing and ensures each family that is nanny sharing, is responsible for their position of the nanny’s employment costs.
- Free Employment Contracts ✓ Subscribers receive a free, tailored contract of employment for the nanny. It also includes pro-rated statutory holiday entitlements. This ensures that both families comply with employment laws and have a clear nanny-sharing agreement in place.
- Compliant with HMRC Regulations ✓ We keep updated with the latest HMRC regulations at Nannywage to ensure we are always compliant.
Contact Us
If you have any questions or queries regarding our nanny-sharing services, please feel free to contact us and we will be happy to help.
Phone: 0208 642 5470
Email: info@nannywageltd.co.uk
FAQ's
Should both employers register with HMRC?
Should both employers issue the nanny with a contract of employment?
Yes, although sharing the nanny both sets of parents are employing the nanny on a stand alone basis for the purpose of employment and each must provide a contract of employment.
Nannywage Ltd offer subscribers a FREE contract of employment as part of our service.
How are holiday arrangements managed?
Both sets of parents should agree when and how holiday will be taken including arrangements should one set of parents want the nanny to accompany them on holiday.
These agreements should then be included in the employment contracts.
Nannywage Ltd will include in the contracts the correct pro rate statutory holiday entitlement for each employer
How is Tax & NIC paid?
As we recommend both employers have separate HMRC small employer schemes each employer only pays their own Tax & NIC due on the employment of the shared nanny.
Nannywage Ltd manage all this on your behalf as per our payroll service.
What happens re disciplinary issues?
Each employer will of course have their own rules of conduct, but should the nanny need to be dismissed from your employment as we recommend separate employer PAYE schemes this will not be a problem.
Nannywage Ltd as per our payroll service handle all leaving documentation on your behalf.
Your Details
Please note,that we only require you to complete this form if the nanny you are employing already has employment elsewhere and is taking a second job with you and has agreed to a tax code split. If you are the primary employer and your nanny is starting a second job elsewhere it is the responsibility of the secondary employer to request a tax code split on behalf of themselves and the nanny.
When completing your payroll form:
ONLY enter the salary you are paying the nanny NOT the total salary of both employers
When completing your contract questionnaire:
ONLY enter the days, hours and start / Finish times the nanny will work for you.
For example nanny works Mon, Tues & Weds from 8am – 4pm for both employers, we need your details Mon, Tues & Weds 8am – Noon
These are your employment details only and do not include the other employer who will employ the nanny Mon, Tues & Weds Noon – 4pm (Arrange details of start / finish employment times with other employer)