Avoid the potential nightmare of battling through forms and calculations, paying the wrong tax, getting fined £100 per month for late returns, dealing with the taxman etc.
Taxing Nannies is a specialist nanny payroll and nanny PAYE service that has helped thousands of parents like yourself through this minefield.
For just £20 per month (including VAT) we will take care of everything related to nanny tax issues including opening a nanny PAYE scheme, calculating nanny tax and National Insurance and providing regular payslips to your nanny, advising on Sick Pay and Maternity Pay, and handling all dealings with HM Revenue & Customs. (View our full list of payroll services.)
Taxing Nannies is the best nanny tax and payroll service, established in 1995.We have a very high ratio of staff to clients and are led by Sara Graff, a mother with much personal experience of employing a nanny as well as a Chartered Accountant and Member of the Institute of Taxation for over twenty years. The payroll service is highly personal, responsive and efficient – and, very inexpensive.
Employing a nanny brings with it the same obligations as any business taking on an employee. By law, therefore, an employer must account for Income Tax and National Insurance Contributions on the salary paid to a nanny or mothers help, whether they are full time, part time or temporary. A nanny’s salary is normally quoted net of deductions (i.e. the amount she wishes to receive in her hand), and it is therefore the employers responsibility to pay over to PAYE, Employees National Insurance and Employers National Insurance to HM Revenue & Customs in addition to the net salary paid to the nanny. Expenses paid in benefits provided on behalf of a nanny in addition to her salary may be liable to a separate charge to Tax and National Insurance.
Remember that avoiding the taxman is illegal. If HMRC catches up with an employer who has failed to declare their nanny for tax uk purposes or has tried to maintain that she is self-employed, then they will be liable to pay the correct Tax and National Insurance Contributions and interest and penalties. There is no legal right to seek repayment from the nanny.
Taxing Nannies would be happy to assist you should you be looking to outsource your payroll as at present Sara Graff carries out a tax and payroll service for employers of housekeepers, gardeners, butlers, drivers, cleaners and other domestic staff as well as running payrolls for a range of nurseries and other small businesses.
Sara Graff is a qualified Chartered Accountant and Chartered Tax Advisor and provides accounting and tax services in addition to the general Taxing Nannies nanny tax and nanny PAYE service. She would be happy to assist you in preparing your personal tax return or assist you with other accounting services and if you wish to avail yourselves of this service or would like some general payroll advice or help please contact Sara on +44 (0)208 882 6847.
Taxing Nannies is a nanny tax and nanny PAYE agency based in North East London catering for anyone who employs domestic staff. Sara Graff, who started the agency in 1995, also runs Sara Graff and Co, an accountancy company offering tax advice and tax services to businesses across the UK.
Sara trained as a Chartered Accountant and qualified at the age of twenty two and passed the Institute of Taxation examinations a couple of years later. Realising how essential it was to build relationships with clients and how communication is such an important part of being a Chartered Accountant, she appreciates that being a good accountant is more about being a “people” person than being able to deal with the numbers.
Following the birth of her two sons, Sara continued to work for a firm of accountants but when she returned from maternity leave after her younger son was born, she was made redundant. She came across an article in the Daily Telegraph which discussed the impending penalty regime for the late filing of employers’ end of year returns and how this was going to affect small employers paying tax for their employees including those that employed nannies. She already employed a nanny to look after her two small children and thought that there may be a niche to start a specialist payroll agency helping employers to deal with paying nanny taxes. With the help of her redundancy package, Sara launched Taxing Nannies in 1995.
Taxing Nannies delivers a very high level of personal service to their clients. Clients often contact the all female Taxing Nannies team whenever they have a problem in dealing with their nanny tax. The team are approachable and friendly and very happy to discuss issues related to employing nannies or domestic staff. Denise Connick and Sally Beale have worked with Sara for 14 years and 12 years respectively.
Taxing Nannies has grown as a business; however they still manage to provide a very personal service with many face to face meetings and a pro-active service. They provide regular newsletters to clients, bringing issues such as the implications of a change in salary or tax code to an individual client’s attention, rather than just going through the motions of amending the payslip to reflect those changes.
A large proportion of Taxing Nannies’ clients reside in London and the Home Counties but we act for employers of nannies nationwide including Scotland. The majority of their clients are parents employing nannies and these cover a complete cross section of the public.The team also works with employers of housekeepers, butlers, gardeners and other domestic staff and offers payrolls services for businesses and directors.
Taxing Nannies are not the cheapest nanny payroll agency but Sara Graff made a conscious decision that they do not wish to sacrifice the quality of our service. Fees still only work out at 67p per day inclusive of VAT and have remained unchanged for six years.
Most of Taxing Nannies nanny tax UK and payroll clients are busy people, many juggling a demanding career with a young family and busy home life. The team aims to ease their burden by removing one hassle from their hectic schedule and experience has shown that the Taxing Nannies service makes a real difference.
To contact Sara and her team about the services offered by Taxing Nannies or Sara Graff and Co, email post@taxingnannies or call them on 020 8882 6847.
An employer of a nanny has a duty to check that they are entitled to work in the United Kingdom under The Immigration, Asylum and Nationality Act 2006. Fines will be implemented of up to £10,000 for each illegally employed worker and unlimited fines and imprisonment of up to 2 years can be imposed for knowingly employing illegal workers. You may remember the case involving Baroness Scotland in 2009, where she was fined £5,000 for failing to keeping copies of documents relating to her Tongan cleaner.
You need to obtain copies of certain documents from all potential employees (whether you believe them to be British or not). You also need to satisfy yourself that your potential employee is the rightful holder of any of the documents they present to you and to make a photocopy or a scan of the following:
a) The front cover and pages containing the employee’s personal details, photograph and signature
b) Any page containing a UK stamp or endorsement
The documents that should be checked are:
EITHER - any one of the following:
1. A passport showing that the holder is a British citizen, or has a right of abode in the UK or
2. A passport or identity card showing that the holder is a national of an EEA or Switzerland or
3. A passport or travel document showing that the holder can stay indefinitely in the UK
4. Residence permit, registration certificate or omHHHHHome office or Border Agency document indicating rights of permanent residence to an EEA or Swiss national or family member
5. A passport or other travel documents indicating the holder is exempt from immigration control, is allowed to stay indefinitely in the country or has no time limit on their stay.
OR - two of the following:
1. An official document showing the employee’s permanent national insurance number
1. A full birth certificate issued in the UK or channel Islands, Isle of Man or Ireland which includes the names of the holder’s parents or
2. A certificate of registration or naturalisation stating that the holder is a British citizen or
3. A letter or Immigration Status Document issued by the Home Office which indicates that the person can stay indefinitely in the UK or can do the type of work being offered or
4. Full UK, Channel Island, Isle of Man or Irish adoption certificate
1. A passport or travel document or letter from the home Office endorsed to show that the holder is able to take the employment in question.
2. A work permit together with a passport or travel document or letter from the home Office endorsed to show that the holder is able to take the employment in question.
You need to satisfy yourself that your potential employee is the rightful holder of any of the documents they present to you and to make a photocopy or a scan of the following:
a) The front cover and pages containing the employee’s personal details, photograph and signature
b) Any page containing a UK stamp or endorsement
For most EU employees there is no restriction on working. If you employ a nanny from an EU country, you will need to view either a passport or national identity card.
However, it is very important to note that if your nanny is from Bulgaria or Romania they will need permission to work from the UK Border Agency before they can work as an employee.
The process for obtaining authorisation to work is in two stages:
1. The UK employer fist applies for approval of the employment under the work permit arrangements. (This does not apply to “domestic workers” but nannies are not included within this exemption).
The Bulgarian or Romanian national must then apply for an Accession worker card.
No Accession Worker Card is required if the person is self-employed.
For further information please visit www.ind.homeoffice.gov.uk or you can ring the employers’ helpline on 08457 143 143.
Please be aware of fraudulent emails purporting to be from HMRC. The fraudulent emails usually inform recipients that they are due a tax rebate and provide a click-through link to a replica of the HMRC website.
These are not genuine HMRC messages and should be disregarded. It is part of a ‘phishing’ exercise that uses bogus e-mails and websites to trick taxpayers into supplying confidential or personal information. The ‘phishing’ emails are being sent from inside the UK and around the world. The emails often start with phrases which alert taxpayers to the fact that they are due a refund of tax.
Phishing is one way that cyber criminals can use your details to create false bank accounts, tax accounts, loans and credit card applications. This is a growing problem for anyone using online reporting facilities and we all need to be vigilant.
In a recent press release HMRC have stated that ‘We currently only ever contact customers who are due a tax refund in writing by post. We don’t use telephone calls, emails or external companies in these circumstances. If anyone receives an email claiming to be from HMRC, please send it to firstname.lastname@example.org before deleting it permanently’.
If you are unsure as to the authenticity of any email purporting to be from HMRC you should avoid clicking on any links until satisfied that the email is legitimate. You may always contact us at Taxing Nannies at if you are unsure as to the legitimacy of an email.
The childcare voucher scheme was changed from 6th April 2011 and any parents subscribing to a voucher scheme after that date will only be eligible for tax relief at 20%.
Nanny Tax Guide :
The mileage rate increased on 6th April from 40p per mile to 45p per mile for the first 10,000 miles so employers can pay this amount to their nanny without any tax charge being incurred. This is a useful tax bonus if you nanny will need to make frequent journeys with your children.
The personal allowances for income tax are increased from 2011/12 to £37,475 and the threshold for national insurance is also rising. From 2011/12, for salaries of £136 per week or less, no tax or NI will be payable if this is the nanny’s sole employment. If the nanny is employed elsewhere, there will still be a tax liability although the NI threshold applies to each employment. National insurance rates to rise by 1% for employees and employers.
Do you have a friend or colleague who needs our help? Recommend a parent to us and we will give you £20 in M&S vouchers.
Are you a nanny agency who would be happy to recommend our services such as PAYE Service, Nanny Payroll Service? We pay commission for all successful introductions.
For further details please see http://www.taxingnannies.co.uk/nanny_payroll_services.php
HMRC is currently sending out tax calculations to some taxpayers using the P800 form. The form shows HMRC’s tax calculations in respect of the tax year ending 5 April 2011. This form is sent to taxpayers after HMRC have received details of the salary, pension and tax paid for each individual from employers and pension providers. HMRC use this information to see if the correct amount of tax has been paid.
Nanny Tax Payment
In most cases, taxpayers that pay tax through the PAYE system will have paid the correct amount of tax. However, if too much or too little tax has been paid taxpayers will be sent a P800 form. HMRC are currently sending out P800 forms to taxpayers due a refund for the last tax year i.e. those who have paid too much tax and HMRC will automatically send a cheque within 14 working days of the date on the P800 Tax Calculation.
HMRC will send P800 forms later in the year to taxpayers that have paid too little tax. HMRC will usually collect any underpayment of less than £3,000 in 12 monthly instalments beginning in April 2012. Taxpayers who receive a P800 form should ensure that the figures quoted are correct.
Taxing Nannies PAYE service would be happy to assist with employers whose nannies receive underpayment notices and who are concerned that they may not be correct.
A recent tribunal hearing considered an appeal by a taxpayer who had sold his business back in July 2008. Upon the sale of his business the taxpayer paid his employees and issued them with P45 forms. As the business had ceased on 28 July 2008 an employer’s annual return should have been submitted to HMRC by 19 May 2009. The taxpayer was not aware of this fact and did not make any such return. In May 2010, almost two years after his business ceased HMRC issued a fixed penalty notice of £800 to the taxpayer for the failure to file an annual return.
The taxpayer appealed the penalty charge arguing that he had a reasonable excuse for the non-submission. The taxpayer explained to the tribunal that he had spoken to HMRC to inform them that he was no longer going to be in business and requested HMRC’s advice as to what actions he needed to take. The taxpayer was advised to write to HMRC, which he did, but was not informed of a requirement to file an annual return. HMRC were unable to prove to the tribunal that the filing notice had been sent to the taxpayer’s new address.
As has been frequently mentioned in recent tribunal cases, a reasonable excuse may involve an exceptional event but need not necessarily do so. The tribunal accepted that the taxpayer had a reasonable excuse that ‘was primarily caused by the appellant being given either misleading or incomplete information which led him reasonably to believe that he had done all that he was required to do upon closing or selling his business’. The taxpayer’s appeal was allowed.
Taxing Nannies have a good record of dealing with appeals. If you as an employer have received a penalty notice and are not sure whether it is due, Taxing Nannies will be pleased to assist you with any appeal required. Taxing Nannies would also be happy to assist with employers whose nannies receive underpayment notices and who are concerned that they may not be correct.