Benefits in kind are perks provided by the employer which are in addition to the nanny’s salary. Where the employer pays for the nanny’s Ofsted Registration this is classed as a Benefit in Kind.
Each year we ask our clients to declare any Benefits in Kind so they can be declared to HMRC.
The nanny will pay 13.8% of the value of the benefit. If the nanny is on a net, then the employer will end up paying the additional tax. Read more here on Gross vs net salaries.
Accommodation, where the nanny’s accommodation is on the same grounds as the employer’s property but has a separate entrance/utility bills and or the accommodation is totally separate from employers property.
Car (owned by the employer), where the family provides a car for the nanny that will be used for personal use (travel to and from work is considered personal use).
Travel, where any form of travel for the nanny that isn’t for work purposes.
Ofsted Registration, where an employer is paying for their nanny’s Ofsted Registration
Mobile Phone, where the contract is between the nanny and the supplier and the employer pays the phone charges.
Loans, where the value exceeds £5000 per year.
Nanny Insurance
Health Insurance
Gym Membership
Non-working related training
Visas
Accommodation, where the nanny’s accommodation is provided within the employer’s home.
Car (owned by the employer), where the employer is providing a car and the nanny exclusively uses the car to carry out their duties.
Car (own car), if the nanny is using their own car then the family can remunerate up to 45p per mile, above that amount is considered a benefit in kind.
Mobile phones, where the contract is between the employer and the supplier and the nanny uses the phone.
Taxi rides home from work if the nanny finishes between 10pm-6am and this is outside of their regular working pattern.
Loans below the value of £5000 per year
Welfare counselling (EAP)
Small gifts (below the value of £50)
Travel to and from work where a nanny is disabled
Parking costs if this is used solely for work
Expenses incurred for work purposes
Training where this will support the nanny’s job performance
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Employment Contract
Bank Holidays are included in the 28 days entitlement. Therefore, if a nanny takes a Bank Holiday day off, it will be deducted from their holiday entitlement.
Statutory Excuse
Bank Holidays are included in the 28 days entitlement. Therefore, if a nanny takes a Bank Holiday day off, it will be deducted from their holiday entitlement.
Redundancy
Bank Holidays are included in the 28 days entitlement. Therefore, if a nanny takes a Bank Holiday day off, it will be deducted from their holiday entitlement.