If you, like many parents are concerned about the increasing cost of childcare in the UK, you may have been worried to hear in the press that you'll soon be required to make pension contributions to your nanny.
The Daily Mail had this report claiming a rise in costs of up to £600 per year- a substantial amount for any home employer.
So, what does this really mean for parents? Well, the government actually introduced the Pensions Act in 2012. It requires all employers who pay their employee more than £9,440 per year to provide a workplace pension.
However, if you like most domestic employers employ less than 30 people, you won't have to enrol or take any action before June 2015, and for some families it may be much later- even as late as 2017.
Contributions will also increase over time, so you may find your first year or two of payments are as little as £200 per annum.
The benefit of pension contributions for nannies
Nannies have long fought for a more professional image and more respect in their industry. Too many parents still try to pay their nanny under the table- whilst expecting high standards on the job.
At KiwiOz Nanny Agency London we always find the most successful nanny relationships are with families who respect the nannies role, provide a contract and pay tax and NI where appropriate.
Adding a pension contribution on to this for nannies will be one further step towards formalising the family/ nanny relationship and professionalising the industry, which in turn will mean better nannies, more efficiently run households and happier families.
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Or to find out more about Pensions for nannies, go to the NannyTax website.
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