Nanny Shares
Nanny shares are becoming an increasing popular way of making nanny employment more affordable and accessible for many families. It can also be a good way of allowing an only child to socialise with other children without going to nursery.
Nannies can often work for two or more families, by caring for the children all at the same time or by splitting the week between them.
It is important to remember that however many families the nanny is working for, each will be considered an individual employer and as such have the individual responsibilities, even if all the children are being cared for at the same time.
Tax code split
If a net salary has been agreed by both families, then a nanny’s tax free allowance can be split between their employers as a way of ensuring that each family benefits from a fair total cost by allocating a proportionate share of the nanny’s tax free allowance.
If all employers agree a gross salary then a tax code split is not necessary as their total costs are protected, all employers will be paying the correct deductions.
Clients are advised to contact us directly if nanny wishes to split their tax code.