On 1 April 2018, the national living wage increased to £7.83 per hour for employees aged over 25. On that date the national minimum wage also increased to £7.38 per hour for employees aged 21 and over, to £5.90 for employees aged 18-20 and to £4.20 for workers aged 16-17. In addition there is an apprentice rate of £3.70 per hour.
Maternity rights and Statutory Maternity Pay (SMP) for nannies are two tax and payroll topics that our clients frequently ask us about. This article aims to provide employers of nannies and other domestic staff with key details regarding the main issues.
Sara Graff, the Principal of Taxing Nannies, is a Chartered Accountant of many years standing.
Our Guide to Childcare Options aims to provide easy-to-understand insights into the choices available to people who return to work after maternity leave – including employing a nanny.
Were you aware that if your nanny is found to be illegally employed, you may be liable to civil penalties and an eye-watering fine of £20,000? And if you knowingly employ illegal workers, there can be prison sentences of up to 2 years as well as unlimited fines.
All workers now have a statutory right to at least 5.6 weeks paid annual leave (ie 28 days paid holiday if your employee work five or more days a week) and this needs to be pro rata for those working part-time.
On 6 April 2009, the statutory dismissal and disciplinary procedures were repealed and therefore an employer is not required to follow them for 'trigger events' occurring on or after that date. However, an employer is still required to follow a fair and reasonable procedure as set out in the revised ACAS Code of Practice on disciplinary and grievance procedures.
At some point between now and October 2017, all employers – including those who employ a nanny – will be required to enrol their employees in a workplace pension scheme. It's the law, so as the Government's adverts say, "Don't ignore it!"
If your nanny or a member of domestic staff has been – or is expected to be – off ill for 4 weeks or more, a new Government scheme aims to help them to get back to work as soon as possible.
There are various tax breaks available to assist with 'approved' childcare, including nannies. These include Child Tax Credit (CTC) and Childcare Vouchers. To be 'approved', nannies must join the Ofsted Childcare Register as a Home Childcarer.
