This is a tool that calculates the cost of employing a nanny in the UK, given the net pay for the nanny, and displays the results in a table.

The results table contains hourly, weekly, monthly and annual rows showing the net pay, income tax, employee national insurance contributions (Class 1) and gross pay, which is the sum of the previous three. After this, the table displays the employer national insurance contributions (Class 1) and finally the total cost, which is the sum of these employer contributions and the gross pay of the nanny.

Note: It is not possible to specify any additional employment benefits (taxable or otherwise) in this tool.

Note: The tool assumes that the nanny is over the minimum contribution age (16) for NICs and under the state pension age during the whole tax year.

Note: The tool does not take into account any tax or NIC issues that may arise from a nanny being employed in more than one job at the same time.

For the calculations, it is necessary to supply the following compulsory information:

• The net pay for the nanny in hourly, weekly, monthly or annual terms.
• The number of hours worked by the nanny per week.
• The tax year, noting that this runs from 6 April in the first year to 5 April in the next.

The data (e.g. rates and allowances) used by this tool was obtained primarily from...

http://www.hmrc.gov.uk/rates/it.htm

and...

http://www.hmrc.gov.uk/rates/nic.htm

Associated tool link: http://www.coggit.com/tools/uk_cost_of_employing_a_nanny.html