The Nannyplus Blog

Good news for employers and Nannies alike !

March 21st, 2013

Budget Update  March 13 – Good news for employers and Nannies alike !

 

George Osborne has just confirmed that the tax free allowance from April 6th 2013 will increase to £9440, an increase of £1335, What does this mean for Nannies salaries?

Net Salaries

Nannies on a net salary will not benefit from todays announcement – they will continue to receive the same payment each week/month.

Parents who have agreed a net salary will benefit from today’s announcement as they will see their  quarterly liabilities (Tax, National Insurance and Employer’s National Insurance) reduce.

For example a nanny on a net salary who earns 350 net per week will continue to receive 350 net per week from April 2013. Between April 2012 – March 2013 the parent would have paid (based on a standard tax code) an additional £134 per week of Tax, National Insurance and Employer’s National Insurance), from 6th April 2013 the parent will pay £124, £10 less per week.

Gross Salaries Nannies on a gross salary will benefit from today’s announcement and see an increase in their pay each week/month.

Parents who have agreed a gross salary will see a slight reduction to their quarterly liabilities (Tax, National Insurance and Employer’s National Insurance) due to the change to the National Insurance threshold.

For example a nanny on a gross salary of £450 (between April 2012 – March 2013) would have received (based on standard tax code) £354 net per week, from 6th April 2013 the nanny will receive £360 net per week, £14 more per week. The parents will pay slightly less Tax, National Insurance and Employer’s National Insurance (due to the change to the National Insurance threshold).


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