Employing a nanny

[WindyAnna]

I'm having an internal debat about whether to stay umbrella or go Ltd - both Mr WA and I are inside IR35 so teh debate is not as clear cut as if we weren't. (I have heard all the arguments either way a number of times so not needing to hear them again) but I heard an interesting possibility the other day that could really swing it Ltd - but I don't think it is valid - anyone got any experience ...

I employ my nanny personally as a small employer meaning that apart from the small part I can claim pre-tax in childcare vouchers I am paying her salary (and thus tax) on money I've already been taxed on.

Met a lady who employs her nanny through her Ltd Co. Her argument is that her home is her registered place of work and she operates a workplace creche. She employs her nanny as a "Creche Manager" and states that the creche is available for all employees. she is the only employee and her job requires her to be out on client site 99% of the time. She then places her child in the care of the workplace creche and 'pays' £30 a day for the privilege. Nanny costs are around £30K a year, in excess of £110 a day so this is beneficial.

Does this sound right?

Cheers

Windy

[Ardesco]

Sounds like a genius idea to me!!

Not sure how well HMRC would take it in an investigation though. Any of the regular accountants willing to advise ?

[oracleslave]

I'm having an internal debat about whether to stay umbrella or go Ltd - both Mr WA and I are inside IR35 so teh debate is not as clear cut as if we weren't. (I have heard all the arguments either way a number of times so not needing to hear them again) but I heard an interesting possibility the other day that could really swing it Ltd - but I don't think it is valid - anyone got any experience ...

I employ my nanny personally as a small employer meaning that apart from the small part I can claim pre-tax in childcare vouchers I am paying her salary (and thus tax) on money I've already been taxed on.

Met a lady who employs her nanny through her Ltd Co. Her argument is that her home is her registered place of work and she operates a workplace creche. She employs her nanny as a "Creche Manager" and states that the creche is available for all employees. she is the only employee and her job requires her to be out on client site 99% of the time. She then places her child in the care of the workplace creche and 'pays' £30 a day for the privilege. Nanny costs are around £30K a year, in excess of £110 a day so this is beneficial.

Does this sound right?

Cheers

Windy

Saw the headline and thought you were looking for contractors again. Figured the jump from SAP to nannies was a radical change of direction.

[Ruprect]

the only spanner in the works that I can think of is that I *think* the creche needs to be a registered/validated/approved/certificated/whatever creche for the childcare vouchers to be applicable. Therefore the creche needs to be inspected or something.

Not 100% sure though.

[malvolio]

Entirely legal, but I think Hector might see it as a BIK. You dont want to work because you have a nanny, you have a nanny because you want to work. Like the man said, get professional advice.

Inside IR35 or not (and I'd lay odds you needn't be...), YourCo is more cost effective than an umbrella.

[Ardesco]

the only spanner in the works that I can think of is that I *think* the creche needs to be a registered/validated/approved/certificated/whatever creche for the childcare vouchers to be applicable. Therefore the creche needs to be inspected or something.

Not 100% sure though.

You wouldn't need the childcare vouchers because the nanny's company would be paid by your company, not by your wages.

[WindyAnna]

Inside IR35 or not (and I'd lay odds you needn't be...), YourCo is more cost effective than an umbrella.

Working practices wallop me so firmly inside IR35 I can't see the outside!

[WindyAnna]

You wouldn't need the childcare vouchers because the nanny's company would be paid by your company, not by your wages.

Indeed and that is why it is soooo lovely, if legal!

[WindyAnna]

Saw the headline and thought you were looking for contractors again. Figured the jump from SAP to nannies was a radical change of direction.

Nannies are so much nicer than SAP contractors!

There was a time when SD considered nannying as I recall?

[Ruprect]

Indeed and that is why it is soooo lovely, if legal!

Ah - light dawns - got you. Like it. let us know if you get away with it.

Some opinions from the accountants would be good!