A is for a co-operative Attitude. Maintaining good communication between you and your employer is paramount to a successful working relationship.
Dialogue is the best way to not only build trust, but also to nip worries and concerns in the bud before they blow up into serious problems.
B is for the Budget. Every spring, the Government announces any changes to be made to tax and National Insurance rates and personal tax allowances for the next tax year, and introduces other wage-related policies. Look out for this, as it may affect your personal finances.
C is for CRB check. Most nanny agencies are now asking nannies to be checked by the Criminal Records Bureau (CRB) before they agree to place them. The process, which is known as disclosure, takes approximately four to six weeks to complete. Although a CRB check is not, as yet, a legal requirement, it is considered best practice, as it will show you in a professional light and reassure your employer.
D is for Don't lose out. If your employer fails to register for PAYE, or if they register but only declare part of your salary in order to save themselves money, it will affect your full entitlement to state benefits.
Also, remember that you will need evidence of declared income in the form of wageslips to get a personal loan or mortgage or provide a financial reference to a landlord. It is never in your interest to agree to any illegal tax-saving arrangements with your employer.
E is for Employment contract. Your employer must provide you with either an employment contract or a statement covering the main terms and conditions of your employment, within two months of your starting date. Your contract of employment should also spell out house rules, disciplinary procedures and any benefits to which you are entitled. The contract is a legally binding agreement and protects both you and your employer.
F is for Forms from the Inland Revenue. There are three forms you need to be aware of as an employee. When you leave a job you will be issued with a P45, which you must give to the next family you work for. This form tells your new employer your earnings and deductions so far this tax year and which tax code applies to you. If for any reason you are not given a P45 when you leave a job, you can ask your new employer for a P46, which you then have to fill in. At the end of each tax year your employer should provide you with a P60. This is an annual summary and shows total earnings and deductions made on your behalf. Keep the P60 in a safe place.
G is for Gross pay. Many nannies and parents continue discussing salaries in terms of net (i.e. take-home) wages. This outdated arrangement has several disadvantages. For instance, if you have a net pay deal with your employer and the Government increases the personal tax-free allowance (something they do most years), your employer is not obliged to pass the tax cut on to you. Similarly, if the Government cuts the basic rate of income tax, your employer is not obliged to pass any of the savings on to you. Only employees on a gross wage automatically receive the benefit of cuts through paying less tax and NICs.
H is for Holiday pay. You are legally entitled to four weeks (20 days) paid holiday per year under the European Employment Legislation. The four weeks can include all bank holidays. If you are employed on a part-time basis you are entitled to the pro-rata equivalent. For example, if you work three days per week you will get 12 days paid holiday per year.
I is for Insurance. Public liability insurance policies specifically designed for nannies have been available for some time and are becoming increasingly common. Such a policy would cover you in the event of an accident to the children in your care, for which you might be held liable.
J is for Job description. Included in your employment contract should be a detailed description of your duties, which should make clear what you are and are not expected to do. If your job description includes duties you object to, you have an opportunity to ask for it to be rewritten.
K is for Know your rights. If you work as a nanny and your employer asks you to sort out your own tax, you must insist that it is their responsibility, not yours, and that you fully expect them to fulfil their obligation. If they refuse, don't work for them!
L is for Learn the basics. It is in your interest to understand the key responsibilities your employer has to fulfil. Your next position could be with a first-time employer and if you have the knowledge, you can help them get it right and avoid unnecessary hassle and delay.
M is for Maternity pay. If you are pregnant and have been working for the same family for at least nine months prior to the baby's due date, your employer is obliged to administer Statutory Maternity Pay (SMP) on your behalf. For the first six weeks of your maternity pay period you are entitled to 90 per cent of your gross wage. For the subsequent 20 weeks you are entitled to 100 gross per week. In nearly all cases your employer can reclaim all costs of operating and paying SMP from the Inland Revenue.
N is for National Minimum Wage. All parents employing a nanny in the UK are legally required to pay at least the National Minimum Wage (NMW). The current gross per hour NMW rates are: 3.60 (age group 18-21) and 4.20 (age group 22 and over). The rates are set to increase to 3.80 and 4.50 respectively on 1 October. The NMW does not apply to employees under 18 or to nannies living as part of the family household.
O is for Operating a PAYE scheme. Your employers are responsible for setting up and running a Pay As You Earn scheme on your behalf. This means you are their employee and they must register as an employer with the Inland Revenue. It is a criminal offence not to register.
P is for Pension contributions. Although old age may seem a comfortably long way off, it's never too early to start thinking about your pension. By paying NIC you will automatically qualify for both basic state pension and state second pension contributions. It is also advisable to look into an additional scheme such as a stakeholder pension. If you would like further information, you may want to speak to an Independent Financial Advisor or contact the Pensions Helpline on 0845 3000 168.
Q is for Quarterly liabilities. It is your employer's legal responsibility to ensure the correct deductions are made from your gross wage on your behalf and paid to the Inland Revenue every quarter.
R is for Redundancy pay. You are entitled to redundancy pay if you have been in continuous employment for a minimum of two years, unless you are on a fixed-term contract.
S is for Self-employment. As a nanny you cannot be classed as self-employed, as the nature of your work does not meet the Inland Revenue criteria for self-employment status. The only exceptions to this rule are maternity nurses and some nannies in continuous temporary employment. If you think you qualify to be self-employed, you should contact your local tax office.
T is for Training. Improve your confidence and give your employers added peace of mind by making sure that your first aid certificate is kept up to date. You may also want to sign up to other courses or workshops related to childcare, such as nutrition. This can be a great way to meet other nannies as well.
U is for Unfair dismissal. If you have been in continuous employment (i.e.
working for the same employer) for at least one year, you are automatically protected against unfair dismissal.
V is for Virus and other bugs that leave you unwell. As an employee on PAYE you are entitled to Statutory Sick Pay (SSP) if you are sick for more than three consecutive days. The current rate of SSP is 12.87 per day, and it can be paid instead or as part of your normal rate of pay, at your employer's discretion. Your employer may be able to reclaim some of the costs from the state.
W is for Wageslip. Your employer is obliged to provide you with a wageslip every time you are paid. The wageslip must show your gross wage and the tax and NI deductions made on your behalf, as well as your net wage.
X is for eXcellent references. A clean enhanced disclosure? Check. An up-to-date first-aid certificate? Check. Public liability insurance policy? Check. Perhaps you have an NNEB, a BTEC or other childcare qualification.
Great! But at the end of the day, what is going to matter most to parents when they are looking for a nanny, is someone with the right personality for their family, your experience, and good references.
Y is for You. In your busy working life it is important to take time out and look after yourself. Use your free time to do something you really enjoy.
Z is for Zest. The more you put into something the more you will get out of it, so take pride in the work you do, even if it's just a temporary position. Enthusiasm and a positive outlook will always pay off.
Asa Nilsdotter is communications manager and Stephen Vahrman is managing director of the payroll service Nannytax
