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Someone emplying domestic Staff

  • Fellow PM.Dip
  • 37 posts
  • # 77547

As a new bookkeepermany things are new for me. This may seam obvious but needs to be asked.

I have a client who is self employed and has taken on a nanny to look after her children. This nany is NOT self employed.


Should my client be redgisteing as an emplyer and deal with the nany in the normal way you deal with any emloyee or are the ruke different?   


Also where does she stand in treating this as a business expense as she says the nany is essential so she is able to work while the children are at home. Does she claim the wages of teh nany as a business expense or is she entitled to certain tax reliefs/ benifits which would mean the wages can not be claimed against tax.

Anyones help on this is most welcome.

Many Thanks        
kjmcculloch
  • 1159 posts
  • # 77549

My understanding is that normal employment rules apply with nannies.  Therefore you need to register as you normally would with any other employee.

As for claiming the expense for the business, it's not an allowable expense.  You may be able to claim the childcare element of working/child tax credits.

Kris 
Liz D
  • 273 posts
  • # 77550

Hi Aaron

These links might be handy for you


http://www.hmrc.gov.uk/paye/intro/domestic-employees.htm

http://www.hmrc.gov.uk/taxcredits/start/who-qualifies/children/approved-childcare.htm
kjmcculloch
  • 1159 posts
  • # 77551

Liz Dsaid:


http://www.hmrc.gov.uk/paye/intro/domestic-employees.htm


Good link Liz.  I'll save remember this one.

Kris
MrsS
  • Member PM.Dip
  • Practice Licence
  • 115 posts
  • # 77553

The nanny may also be eligible for redundancy when she is no longer needed and also maternity leave if she fell pregnant, most people don't realise this.
  • Fellow PM.Dip
  • 37 posts
  • # 77560

Many thanks everyone for your input. Those links are good. This information will help me advise my client accordingly.

Many Thanks again 
Liz D
  • 273 posts
  • # 77608

Strange but True:

I love the HMRC website Smile
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