How to Give Your Nanny a Well-Deserved Christmas Bonus in 2023
It’s that time of the year when families love to show appreciation for their incredible nannies with a nanny Christmas bonus. This gesture not only recognises their nanny’s hard work, but also adds a sprinkle of joy during the festive season!
Here’s a guide to help you make your nanny’s Christmas extra special:
1. Giving Thanks – is a bonus a must?
While it’s not a must-do (unless outlined in your nanny’s employment contract), many families love to give their nanny a bonus at Christmas as a heartfelt ‘thank you’ for all the hard work their nanny does.
2. How Much to Give?
Determining the nanny Christmas bonus amount can be a bit flexible. It’s often a percentage of your nanny’s yearly salary, ranging from half a week’s pay to a full month’s salary. But hey, feel free to spread the festive cheer according to your heart and budget!
3. The Taxing Matter of Bonuses
You will need to pay tax on your nanny’s Christmas bonus, but don’t worry, Nannytax will display the bonus payment and subsequent tax due on your nanny’s payslip!
4. Options Galore – Yes, even cash!
Want to surprise your nanny with cash? Totally doable! However this must be reflected on the payslip as we would still need to calculate the Tax and NI due on top of the amount your nanny receives in their nanny Christmas bonus.
5. Gifts and HMRC – what to report?
Reporting gifts can be a bit tricky, but fear not! Vouchers will need to be declared, but any gifts under £50 (that aren’t cash or vouchers), don’t need to be reported to HMRC.
6. Alternatives for Budget-Friendly Appreciation
If money is a bit tight this year, don’t worry! Expressing gratitude doesn’t have to be pricey. An appreciative card or a handmade gift from the kids can work wonders and make your nanny feel like part of the family.
Nannytax Customers
For Nannytax customers, giving a nanny Christmas bonus is as easy as a snowball fight. Head over to your Employer Members Area, click on “Bonus” under the Manage Employees tab, pick cash or not, specify the amount, and voila! Our nanny payroll team will ensure everything is jingling perfectly on your nanny’s next payslip.
