Taxing Nannies

General Questions About Nanny Employment and Tax- Part 2

Different conditions with Nannies employment and what one can do. There are many things to consider before hiring a Nanny like Nanny PAYE, Nannies payroll service, Nanny Tax and other.

 

London, England -- (SBWIRE) -- 03/30/2012 -- My nanny is pregnant – what do I need to do and what are the implications?

Provided your nanny was not pregnant when she started working for you, she will be entitled to maternity pay (SMP) for up to 39 weeks. You will be required to pay this through the nanny payroll, but the amount can be claimed in advance from HMRC. Your nanny will need to obtain a MAT B1 from her doctor, which is issued after 20 weeks of pregnancy.

SMP is payable at the rate of 90% of the gross for the first six weeks and at a lower rate (£128.73 for 2011/12, £135.45 for 2012/13) for the following 33 weeks and this will be subject to nanny tax deductions in the normal way. Your nanny must not be subject to detrimental treatment for being pregnant. She is entitled to reasonable paid time off to attend pregnancy related medical examinations within working hours and for parent or relaxation classes.

How much maternity leave do I have go give my nanny and does she have the right to return to work?

Your nanny will be entitled to 52 weeks maternity leave regardless of whether she qualifies for SMP. She can start her maternity leave at any time from the start of the 11th week before the week the baby is due and she must notify you on or before the 15th week before the baby is due. She can vary the date on which she intends to start her maternity leave provided that she gives you notice of the new date 28 days before the date originally notified.

You must write to her within 28 days of her notifying you when she intends to take her leave, stating her expected date of return at the end of her maternity period. Your nanny does not need to give you notice of her return if she intends to return at the end of the period of maternity leave. However, if she wishes to return at an earlier date then she must give at least 8 weeks notice of when she wishes to return. If she does not wish to return to work at all she must give you the greater of notice per her contract or statutory notice.

Your nanny is entitled to return to work at the end of her maternity leave period on the same terms and conditions as before. This means that a request to bring her baby to work can be refused. However, she does have the right to request part-time or flexible working and this has to be given consideration but can be rejected on substantial grounds.

What happens about holiday entitlement when my nanny is on maternity leave?

Your nanny’s holiday entitlement will continue throughout maternity leave, but any holiday entitlement not taken by the time maternity leave commences will be lost unless she returns to work in the same "holiday year". When she either returns to work or formally leaves your employment any remaining holiday due will be calculated by reference to the number of days accrued in the current "holiday year".