Last week, the government announced the autumn budget. Here is a breakdown of what it means for nannies and nanny employers:
National Minimum Wage increase: The rate is increasing by 4.1%, from £12.21 per hour to £12.71 per hour (for employees over the age of 21). This wont typically affect nannies in live out work, as the going rate is above this- but if you have a junior nanny, you will need to ensure their salary reflects this.
Accommodation offset: If you have a live-in nanny, the accommodation offset rate also increases by 4.1%, to £11.10 per day.
Taxes: Tax, national insurance, and tax free allowance all remain the same. This means the tax free allowance remains at £12,570 per year, and any earnings above that are subject to income tax.
Pensions: From 2029, NI relief will be capped at £2,000 on salary sacrifice pension contributions. This is still a way off but means any contributions over £2k will be subject to NI payments by both the employer and the employee.
Fortunately - thats it!
This information was collated with help from Nannytax - you can contact them to find out more: www.nannytax.co.uk
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