Are you in a position where you need to hire a nanny but you don’t know how you can pay for it? Many can be an expensive addition. Here at Nannytax, we make proper budgeting for your nanny as simple as can be. Here are 7 of the best tips to ensure you can effectively budget for a nanny.
Working Arrangement Options
The first thing you need to think about is what hours and days you will be requiring the service of a nanny. This is important to consider because you have multiple options you can choose from. For one, you could choose a live-out nanny. This is optimal for those that primarily need daytime care. These are the nannies that will travel to your home on the days you need them and they will leave whenever you don’t require their service any longer.
For anyone that has odd hours or long hours, it may be beneficial to opt for a live-in nanny instead. This is a better option if you require someone to work around the clock looking after your kids. Typically, you will be responsible for providing a live-in nanny with accommodation. Because of this, they will generally work for lesser pay. You can find the average salary of a nanny in your region by looking at this index.
Do You Need A Lot Of Experience?
You want to factor in whether or not you require a nanny with speciality training. For instance, if you want a nanny that can teach your children a different language, you are going to want to get one that can speak it. Also, if you want one that can double as a tutor, you’ll want one with teaching experience. You may even want to opt for a qualified Norland nanny. You will find the rate of pay for a nanny will be dictated by the amount of experience they bring to the table. If they bring additional skills to the table, you can expect to pay even more. It’s a good idea to check out a lot of the nanny agency jobs for more information on this.
This is something you need to factor into your budget as well. Luckily, it’s something that Nannytax can do for you. To be a legally compliant employer in the UK, you’ll need to have various things. For one, you need to have a contract of employment. Another would be regular payslips. You also need to have Employer’s Liability Insurance and even offer a pension scheme if they qualify for it. We have the best services that can handle all of this complicated stuff for you.
You may want to consider whether or not you qualify for Government assistance. The Government has programs that will help you if you need them. You could be entitled to support from the various schemes including Tax-Free Childcare. For those that are eligible with children under 12, you can get upwards of £2,000 for each child annually. This should help you tremendously because it’s money you don’t have to spend out of pocket. You would be required to open an online childcare account where you would receive all of the Government assistance funds. You can head over to childcarechoices.gov.uk to not only figure out whether or not you qualify, but also how much you will get.
Can You Save Money Using Other Ways?
If you only need a nanny to watch your children for a couple of hours per week, it may be a better idea to use a nanny-share. This is typically a great way to keep your expenses down. For this, you would split it with another family. This can help you because you would only have to pay a fraction of the costs. Each family must still fulfil all of the legal obligations as a separate employer. Therefore, you would still need to pay the minimum wage, provide payslips, and have a contract in place. If you are in the UK then I recommend taking a look at ‘ nanny salary calculator UK‘.
Agree On Gross Terms
One of the best things you can do is agree to pay the salary in gross terms. This ensures you know exactly what you are paying. If you do so in net terms, you will find that you are effectively writing them a blank cheque.
Figure Out The Total Cost
You want to factor everything into the equation. You need to calculate the total cost of employment. This includes the Employer’s National Insurance contributions and the percentage of the pension contributions. You can utilise our very useful calculator to figure out the numbers. You’ll want to begin by entering a gross or net salary and you will get a comprehensive breakdown of the employer’s total cost laid out for you.