Paying a net salary is the easiest and most popular way of passing a salary to your nanny. A net pay amount is the pay after all taxes have already been deducted, leaving you with a set regular figure to give to your nanny.

For example you may wish to give your nanny £200.00 per week and put the taxes on top. In this situation DomesticPaye would produce payslips each payday with that exact £200.00 amount showing.

Net Pay Disadvantages

By agreeing a net salary amount you are effectively agreeing to pick up your nannies PAYE and NI tax bill. Normally this is a predictable amount of money but it can leave you open to unpredictable changes in your nannies tax coding.

Paying Gross - Recommended

Paying a Gross salary lets you more effectively fix the cost you are prepared to pay for your nanny but is slightly more time-consuming on your part to administer. To pay a gross salary to your nanny simply tell DomesticPaye how much Gross you are paying her and we will then post payslips direct to you. Each payday open the payslip and simply pay the net amount we indicate to your nanny. The net amount will vary very slightly each payday.

—> Home

—> Our Service in detail

—> How you pay your tax

—> How you pay your nanny

—> You and HMRC

—> Contracts of employment

—> £325 Incentive

—> Subscribe