What You Really Need To Know About Nanny Tax

What you​ Really Need to​ Know About Nanny Tax
If you​ are considering hiring a​ nanny to​ care for your children then there are a​ few important considerations about nanny tax which you​ need to​ take into account .​
Read on​ to​ find out more.
When it​ comes to​ hiring a​ nanny one of​ the​ most important considerations will be the​ expense .​
Whilst having a​ nanny may seem like the​ best solution to​ your childcare needs,​ if​ you​ cannot meet the​ monthly expense it​ is​ an​ option which quickly becomes invalid .​
You would be forgiven for initially thinking that the​ weekly expense quoted in​ most of​ the​ articles and advice you​ find about nanny hire represents the​ amount of​ money you​ need to​ budget for .​
In fact,​ most of​ the​ information out there discusses net wage and fails to​ mention that as​ the​ parent of​ the​ child you​ also have to​ pay tax on​ top of​ the​ usual quoted figure .​
So what do you​ need to​ know about this nanny tax?
• What you​ need to​ pay – When you​ hire a​ full-time nanny you​ will need to​ pay the​ following:
1 .​
National Insurance Contributions
2 .​
Income tax
3 .​
An Employer's National Insurance Contribution
• When to​ pay - If your nanny is​ earning over £97 per week you​ have a​ legal obligation to​ pay national insurance contributions,​ income tax and an​ employer’s national insurance contribution .​
You must set up and operate a​ PAYE scheme,​ keep a​ payroll,​ produce yearly accounts of​ all payments and declare your nanny’s wage to​ the​ Inland Revenue.
• What happens if​ you​ don’t pay – as​ paying nanny tax and national insurance contributions is​ a​ legal requirement,​ you​ are breaking the​ law if​ you​ fail to​ do so .​
The consequence of​ not paying nanny tax may be a​ hefty fine.
• How to​ go about paying – the​ first step to​ sorting out your nanny tax is​ to​ register as​ an​ employer at​ the​ tax office .​
Then many people choose to​ hire the​ services of​ a​ specialist payroll service to​ sort out the​ PAYE scheme,​ national insurance contributions and also provide them with invaluable employment advice .​
These specialist companies make the​ whole process less painful for the​ employer.
What You Really Need To Know About Nanny Tax What You Really Need To Know About Nanny Tax Reviewed by Henda Yesti on July 06, 2018 Rating: 5

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