The B.A.P.N. have initiated the ‘Let's Talk Gross ££' campaign to raise awareness about the negative effect of agreeing nanny pay as net and to see that both parents and Nannies benefit from agreeing salaries on a Gross Pay basis – in line with nearly every other profession in the UK!
Most other professions in the UK set out a salary on a Gross Pay basis. The Employer is then responsible for deducting their Employee's tax and National Insurance from the gross amount and paying it over to HMRC on their behalf.
Employers then have a clear idea of what their costs will be as they add together the gross pay and the Employer’s National Insurance liability (if the gross pay is more than £624 per month) plus any other benefits they might offer.
The Nanny profession however, seems stuck in the Downton Abbey era – when nannies were classed as domestic servants and salaries were agreed net with the Employer being responsible for the PAYE contributions on top.
Both parents and the nannies themselves are at risk from many factors when salaries are agreed as net – such as unexpectedly high wage bills (parents) and not seeing any benefit of increased tax allowances (nannies).
Also, the Treasury loses out on an estimated £57,000,000 every year due to dishonest employers paying “cash in hand” (all too easy under a net pay agreement) and hiding their non-compliance with obligations to make deductions on the employee’s behalf which impacts not only the individuals but the national economy too.
To find out more about the benefits of “talking gross” for everyone concerned, please visit: www.letstalkgross.co.uk
To show your support, please sign the Let’s Talk Gross ££ ePetition
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