Nanny tax liability question

[WindyAnna]

Not sure if any of you will be able to help me with this but I'm struggling to find an answer anywhere else!

I am going to employ a couple of temp nannies to cover my FT nanny maternity leave. One of them will go on to my payroll as my (personal not through the Ltd) employee. The other one is also a childminder and just wants me to pay her the gross amount and she will sort out tax and NI. HMRC does not allow nannies to be self-employed but childminders can be, this nanny is a childminder 2 days a week so reckons she is fine to treat my work as part of that.

My question is - if I agree to this am I likely to be liable for paying her tax and NI if she doesn't???

Thanks all

Windy

[Bluebird]

Not sure if any of you will be able to help me with this but I'm struggling to find an answer anywhere else!

I am going to employ a couple of temp nannies to cover my FT nanny maternity leave. One of them will go on to my payroll as my (personal not through the Ltd) employee. The other one is also a childminder and just wants me to pay her the gross amount and she will sort out tax and NI. HMRC does not allow nannies to be self-employed but childminders can be, this nanny is a childminder 2 days a week so reckons she is fine to treat my work as part of that.

My question is - if I agree to this am I likely to be liable for paying her tax and NI if she doesn't???

Thanks all

Windy

My understanding is that the responsibility for tax and NI lies with the Self Employed Person and them only - it may be worthwhile though checking with HMRC that that is still the case.

[THEPUMA]

My understanding is that the responsibility for tax and NI lies with the Self Employed Person and them only - it may be worthwhile though checking with HMRC that that is still the case.

That is only correct if HMRC accept that she is self-employed. If they determine that she is employed, WindyAnna could be liable.

In order to determine whether or not she is employed or self-employed you need to consider all of the employment status indicators that we all know and love.

[dmini]

I am not an accountant, but.. the obvious question to my mind is - is she acting as a childminder or a nanny on the days with your kid.
Nanny, based in your house, only has your kids (unless you have agreed to a "nanny share" - which you not she would arrange), does not require insurance (but you might!)
Childminder - in their house - free to have other peoples kids, registered with local authority, he / she has insurance etc

[WindyAnna]

Thanks everyone ...

All indicators are that when working for me she is deemed to be employed ... she cares for my child in our house, drives the family car etc. like my current nanny does (and I employ her), only difference is that she brings her own child with her to work. On the other days of the week she is self-employed looking after children in her own home.

As I've agreed a gross payment with her (usually nannies want to agree net) it makes no difference to me whether I payroll her or not except for paying a couple of days holiday but much nastier is if I get held liable for her tax & NI if she doesn't pay it.

She would rather do it through her self-employed status so her tax will be right (If I payroll her she will be on BR code and adjust at year end).

I will push her down the employed routew just hope she doesn't back out of the job!

Cheers all!

WA