What You Really Need To Know About Nanny Tax

If you are considering hiring a nanny to care for your children then there are a few important considerations about nanny tax which you need to take into account. Read on to find out more.

When it comes to hiring a nanny one of the most important considerations will be the expense. Whilst having a nanny may seem like the best solution to your childcare needs, if you cannot meet the monthly expense it is an option which quickly becomes invalid. You would be forgiven for initially thinking that the weekly expense quoted in most of the articles and advice you find about nanny hire represents the amount of money you need to budget for. In fact, most of the information out there discusses net wage and fails to mention that as the parent of the child you also have to pay tax on top of the usual quoted figure. So what do you need to know about this nanny tax?

• What you need to pay – When you hire a full-time nanny you will need to pay the following:

1. National Insurance Contributions
2. Income tax
3. An Employer's National Insurance Contribution

• When to pay - If your nanny is earning over £97 per week you have a legal obligation to pay national insurance contributions, income tax and an employer’s national insurance contribution. You must set up and operate a PAYE scheme, keep a payroll, produce yearly accounts of all payments and declare your nanny’s wage to the Inland Revenue.

• What happens if you don’t pay – As paying nanny tax and national insurance contributions is a legal requirement, you are breaking the law if you fail to do so. The consequence of not paying nanny tax may be a hefty fine.

• How to go about paying – The first step to sorting out your nanny tax is to register as an employer at the tax office. Then many people choose to hire the services of a specialist payroll service to sort out the PAYE scheme, national insurance contributions and also provide them with invaluable employment advice. These specialist companies make the whole process less painful for the employer.

Article Source: http://www.moneyarticlelibrary.com

The Nanny Payroll Service is an extremely well-established and reputable company, specialising in its extensive knowledge of sharing tax codes. For more information visit their websiteNanny Tax UK

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated

Click the XML Icon Above to Receive TAXES Articles Via RSS!

Additional Articles From - Home | Taxes

• Income Tax Rebate Tips: - File your tax return accurately - By : Justin Ryder2
  
• Income Tax Rebate Tips: Save on tax payments - By : JacksonMark1
  
• Facts About Tax In Las Vegas - By : June Carlson
  
• How To Build Credit With ITIN - By : June Carlson
  
• Income Tax Returns Your Accountant Should Not File - By : Stephen Pope
  
• Don't Delay In Managing IRS Tax Debt - By : Brad Stroh
  
• Top 7 Reasons To File Your Income Tax Returns On Time - By : Stephen Pope
  
• Time Requirements And Mechanics Of A Tax Exchange - By : Nationwide1031
  
• Types Of Tax Exchanges - By : Nationwide1031
  
• Wise Tax Ideas - By : Mark Peoples
  

Related Articles:

• Wireless Security Cameras
• Nanny Services Are A Parents Best Friend
• Tap The Profit-Power of Drop Shipping to Increase Your Online or Mail-Order Profits...
• Auto Bill of Sale Forms
• Private Tuition - How To Find A Good Tutor
• Nanny Services Are A Parents Best Friend
• Tap The Profit-Power of Drop Shipping to Increase Your Online or Mail-Order Profits...
• 20-Profit-Producing Network Building Tips That Will Make Your MLM Business A Fast Success...
• The Hurrier I Go the Behinder I Get
• Saving For Your Childs College Education