3 Ways to Nannyshare
Nannysharing is an affordable way to ensure you are providing your children with quality one-on-one care in a home environment. However, it’s important to consider that sharing a nanny involves another family with their own requirements, time and expectations. There’s a lot to think about, but it doesn’t need to be difficult to get started.
Meet Tiare, our Nannyshare Payroll Specialist:
Here to help is Tiare Pride, offering crucial payroll advice to get you on track to sharing a nanny.
Here are 3 ways to share a nanny with another family:
1) The ‘Share and Save’
Scenario: You are friendly with another family who needs childcare or may already have a nanny. You may or may not need an agency to find a nanny.
Each family would still be regarded as separate employers however in this scenario the needs of the parents would be the same. The nanny would look after all family’s children at the same time for the same number of hours per week for the agreed rate per hour.
Tiare says: Each family should be contracted as an employer so the nanny’s pay can be reported accurately. This way each family can be protected. Furthermore, each employer is legally obliged to pay at least minimum wage per hour, per family. Hence, creating a proper contract for nannyshares can become very technical and tricky without the help of a payroll specialist.
2) The ‘Overlapper’
Scenario: You would like to work with a childcare agency to find a family that can overlap childcare on a part-time basis. You prefer to ease your children into childcare and/or socialising with other children.
In this case, each family may have different requirements for most days, but finds that some of the time their requirements match and the children can be cared for at the same time.
Tiare says: Each family will have their own contract and both families will be listed under the employer’s payroll scheme. In this scenario, there would be a single care rate for when the nanny works for just one family and a shared rate for shared care.
You must both be compliant with National Minimum Wage, meaning each family pays at least £7.83.
3) The ‘Silent Partnership'
Scenario: Your family needs independent childcare on a part time basis. You prefer to only communicate with an agency
If a family wants to avoid the hurdles of sharing a nanny with a family directly, they will work with an agency to find a nanny on a part time basis. If the nanny can take on two families, the agency will then coordinate the hours based on each family’s requirements. No contact necessary.
Tiare says: Each family will have their own contract and both families will be listed under the employer’s payroll scheme. The nanny will work for two separate families and each would pay the nanny the agreed sole rate. There would be no cross-over of care however the nanny would be employed by two or more families. Essentially, this nanny has two part-time jobs.
The Infamous 'Tax Code Split'
This is where the nanny's tax-free allowance is split between employers to avoid having only one family responsible for paying basic rate tax on all of the nanny's earnings. Some nannyshare clients like to split the nanny's tax code so the allowance is fair and we are happy to do this if it is preferred. Ultimately, the nanny’s permission is required.
Tiare says: As long as both employers agree a gross salary with the nanny, a tax code split is not really necessary as their Total Costs will be protected. Together both employers will be paying the correct amount of tax overall on the nanny's behalf.
Please note that the nanny can choose how much they wish to allocate to each employer.
Define your Requirements
Before reaching out to agencies, it is recommended you think about how many hours per week you will need care for your family – including the hours where your nanny would look after the other half of the nannyshare's children.
Tiare says: Even though nannies work for two families at the same time, remember that each set of parents are regarded as two separate employers. This also means your payroll is regarded separately. You must both be compliant with National Minimum Wage.
How do I find a family to nannyshare?
To get started, fill out our online form and we will send your requirements to three partner agencies who specialise in sharing a nanny with another family.