By doing this each employer has at least some of the tax free allowance that they can use before paying 20% tax on the nanny’s pay. To achieve this our first step is to move the proportions of tax free allowances away from a 100% allocation to one employer and distribute them pro rate between the employers involved. This may be two or more families and of course the nanny. When organising a nanny share NannyPaye is aiming to achieve a fair result for all parties concerned. It’s important to note that whatever is finally worked out, any allocation of a tax code other than 100% will mean that the taxes in addition to your nanny’s pay will be higher than if she were only working for you. ![]() The task that NannyPaye aims to help you with if finding a mid point that is fair for all employers involved. If you pay the same salary with no tax free allowance this increases the costs to £113.22 per week, a huge increase. For a second employer paying a net salary (i.e parent picks up the tax bill) this will mean one family pays a disproportionately higher tax bill than the other.įor example if you pay a nanny £250.00 per week net using a full tax free allowance you can expect taxes of around £36.92 per week on top of their net wage. If a person has a second job however, the Income Tax in that second job starts at the 20% band leaving out the tax free allowance as it is assumed the primary employer will have already used it. After the tax free allowance is used up each week/month we then have tax bands, a percentage of income that is deducted. This code means that they receive just over £11,850 tax free each year via PAYE. In the UK an individual has a personal tax code (1185L in tax year 2018-2019).
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