June 2015

Do You Employ Anyone Under 21?

You may no longer need to pay employer Class 1 secondary National Insurance contributions (NICs) for them!

From April 2015 the government has introduced a new form of
tax relief for employers whose employees are between 16 and 21 years old. This will affect nanny employers who employ a nanny under the age of 21.
 
What this means in practice, is that employers will no longer have to pay Class 1 Employers National Insurance contributions on earnings up to the Upper Secondary Threshold (UST) for that nanny. As a result, many employers could potentially save hundreds by hiring younger nannies.
 
What do I as an employer have to do to benefit?
 
If your nanny is under 21, you’ll have to choose 1 of the 7 new National Insurance categories when assessing their secondary NICs or your payroll company (such as Nannytax), can do this for you.
 
How much could I save?
To explain, let’s take this example. If an employer pays their nanny £250.00 net per week, to the nearest £ the Total Cost to the employer will be £297.00 per week. With this new system, if the nanny is under 21 the Total Cost would instead be £280.00 (with employer National Insurance deducted) which results in a weekly saving of £17.00.
 
Over the course of the year, that would make a saving of £884.00 to the employer.
Will Nannies benefit?
Under this new scheme nannies will continue to pay their normal employee National Insurance contributions and they won’t see any reduction in their payments. It is purely employers who will benefit from the change. Nannies who are under 21 may notice a change to the National Insurance category letter on their payslip however this will have no impact on their own contributions. 
 
For more information please click here

This tax move for young people follows the introduction of the Employment Allowance which cuts £2,000 off the National Insurance bill for thousands of businesses and charities, which also came into effect on 6 April 2015.


 

Nanny & Carer Wages

 
Quality & Long-Term Cost Efficiency 
 
From 2001 when SNAP began, our policy was that we only wanted to place high calibre candidates and understood that we would need to set (and maintain) a wage that would both attract and keep such candidates. 
 
We believe our model works for our clients who are seeking someone with specific experience and offers good value for money long term. In line with thew industry, and indeed on a national basis, wages have not increased significantly over several years. We do now feel however it is necessary to raise the wages for part-time positions. 
 
Our experience shows that to have a robust, stable part-time placement, especially those with split shifts, we need to recognise these will always be less attractive jobs and warrant a slightly higher hourly rate. 
 
We believe if you pay people the appropriate wage, they will be happy in their job, feel valued and are much more likely to commit for longer. We all know how disruptive it is for a family when staff members change. 

Click here to see the current wage guides
  
 
 

Some of our favourite YouTube Clips this Month

Tell Us About Your Favourite Clips!
Exercise classes for disabled people - disabled fitness instructor Kris's story - Scope video

Exercise classes for disabled people - disabled fitness instructor Kris's story - Scope video

British Gymnastics

Have something to share?

If you have a favourite video clip, app, website or book, why not send us the details so we can share with everyone through SNAP News. We would also love to hear about new technology and equipment, activities and resources that you particularly like. 

Send your nuggets to jackie@snapchildcare.co.uk or call Jackie on 020 7729 2200 
 



SNAP Childcare / SNAP16+ - the specialist recruitment agency placing high calibre professionals to support babies, children, teenagers, young adults and adults with additional needs since 2001.

 
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SNAP Childcare / SNAP16+, 91-93 Great Eastern Street. London EC2A 3HZ