b'Nanny Share OptionsWhen organising a nanny share NannyPayeBy doing this each employer has at least is aiming to achieve a fair result for all partiessome of the tax free allowance that they can concerned. This may be two or more familiesuse before paying tax on the nannys pay.and of course the nanny.This is obviously not as good as being the To achieve this our first step is to move theonly employer and having 100% of the proportions of tax free allowances away from aallowance but it is also far better then being 100% allocation to one employer and distributeclassed as the second employer and receiving them pro rata between the employers involved. none of the allowance.The next move is then to decide if you wish to:A Stay with your net agreement and askB Note the new gross wage amountsNannyPaye to assist your nanny inand revert to a gross agreement thatsplitting the tax code with HMRC so leaves your nanny with the overallthat we can use it for payroll purposes.correct net pay.Tax Code Splitting - Our speciality Change to a new gross amount Most nannies agree a net wage with theirTo avoid the need to involve HMRC in splitting employers because they want to understandtax codes employers can choose to change the what they are being paid, with nanny sharesagreement that they have with their nanny to a being no exception. To keep the employers gross basis, this is set at the new higher gross costs at a reasonable and fair amount yoursalary that they would have paid should the tax employee can apply to HMRC to put in place code split have been implemented.the split tax codes that we calculate for her.This means that you can keep paying your For example your nannys wage may benanny the same net wage and the taxes will 250.00 per week net from Family A andbe calculated using a pro rata amount of the 250.00 per week net from Family B.tax free allowance. If a 50/50 tax code split was implementedThis has the obvious benefit of beingthe gross salary would be 314.24 from eachstraightforward, however, this is reliant on yourfamily (correct at time of print).nanny arranging the tax code split with HMRC. The employers involved can now choose if they wish to fix the pay at the gross amount andsimply apply the normal main employer and second employer tax codes to the pay. This then has the effect of:Employer 1 Pays more to the nanny, less to HMRCEmployer 2 Pays less to the nanny, more to HMRC.Overall however the nanny will receive the same net amount of 500.00 per week, the employers will still have the same overall cost and the employers will also have the protection of agross agreement.5'