Let Taxing Nannies sort out your nanny payroll NOW before HMRC do it for you!

London, England -- (SBWIRE) -- 04/11/2012 -- "Parents face tax bill over nannies" (Sunday Times), "Taxman out to catch the family nanny" (Daily Telegraph), Tax crackdown on parents who pay the nanny in cash" (Financial Times) – these are the headlines that grabbed our attention last week following a decision by the Government to provide more money for HMRC investigations targeted at households who employ a nanny as part of a crackdown on "evasion, avoidance and fraud". This follows evidence that suggests than many parents are not declaring their nanny's salary or topping up the declared salary with untaxed cash payments. HMRC estimate that a fifth of nannies surveyed in a report were not having the relevant nanny tax deductions made.

In nearly all circumstances it is a legal requirement for nannies to be paid through the PAYE system and employees need to be declared to HMRC if their earnings are more than £107 per week (regardless of whether tax is payable at that level). There are very rare circumstances when nannies can be correctly treated as being self-employed.

It is not totally clear how HMRC will tackle this issue at present but they have advised that when a nanny starts a new job it often becomes evident that there is a gap when deductions of PAYE and NI have not been made and they will therefore investigate such cases with more rigour.

In 2013, Real Time Information, (RTI), is being introduced, whereby each time an employee is paid, the relevant nanny PAYE and National Insurance information will be sent directly to HMRC rather than just submitting a form P35 at the end of the financial year. Also, employees will need to be registered with HMRC even if their earnings are below the lower earnings level for national insurance of £107 per week. This is to make it easier to implement Universal Credits from October 2013, as HMRC will require up to date payroll information to process any benefits. HMRC will therefore have much more information available to tackle tax avoidance.

If an employer is caught evading PAYE for their nanny, the new regime will mean that they will need to repay all the under declared tax and national insurance and in addition will have to pay a 100% fine in addition to the current penalty regime for late payment and filing of returns. Employers who as professionals should be aware of the rules, such as accountants and lawyers, could also be prosecuted. Taking the stance that a nanny is self-employed is unlikely to be a defence and HMRC will look to collect the additional PAYE and NI from the employer rather than the nanny.

Are you concerned about what you have just read above? If so, please feel free to contact Taxing Nannies and have a confidential chat. We can help you get your nanny payroll affairs sorted out and backdate where required. We offer a highly professional service and we will deal with your affairs in a pragmatic, sympathetic manner.

We would suggest that this is done as soon as possible to mitigate any penalties or interest for late payments.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Different conditions with Nannies employment and what one can do. There are many things to consider before hiring a Nanny like Nanny PAYE, Nannies payroll service, Nanny Tax and other.

London, England -- (SBWIRE) -- 03/30/2012 -- My nanny is pregnant – what do I need to do and what are the implications?

Provided your nanny was not pregnant when she started working for you, she will be entitled to maternity pay (SMP) for up to 39 weeks. You will be required to pay this through the nanny payroll, but the amount can be claimed in advance from HMRC. Your nanny will need to obtain a MAT B1 from her doctor, which is issued after 20 weeks of pregnancy.

SMP is payable at the rate of 90% of the gross for the first six weeks and at a lower rate (£128.73 for 2011/12, £135.45 for 2012/13) for the following 33 weeks and this will be subject to nanny tax deductions in the normal way. Your nanny must not be subject to detrimental treatment for being pregnant. She is entitled to reasonable paid time off to attend pregnancy related medical examinations within working hours and for parent or relaxation classes.

How much maternity leave do I have go give my nanny and does she have the right to return to work?

Your nanny will be entitled to 52 weeks maternity leave regardless of whether she qualifies for SMP. She can start her maternity leave at any time from the start of the 11th week before the week the baby is due and she must notify you on or before the 15th week before the baby is due. She can vary the date on which she intends to start her maternity leave provided that she gives you notice of the new date 28 days before the date originally notified.

You must write to her within 28 days of her notifying you when she intends to take her leave, stating her expected date of return at the end of her maternity period. Your nanny does not need to give you notice of her return if she intends to return at the end of the period of maternity leave. However, if she wishes to return at an earlier date then she must give at least 8 weeks notice of when she wishes to return. If she does not wish to return to work at all she must give you the greater of notice per her contract or statutory notice.

Your nanny is entitled to return to work at the end of her maternity leave period on the same terms and conditions as before. This means that a request to bring her baby to work can be refused. However, she does have the right to request part-time or flexible working and this has to be given consideration but can be rejected on substantial grounds.

What happens about holiday entitlement when my nanny is on maternity leave?

Your nanny's holiday entitlement will continue throughout maternity leave, but any holiday entitlement not taken by the time maternity leave commences will be lost unless she returns to work in the same "holiday year". When she either returns to work or formally leaves your employment any remaining holiday due will be calculated by reference to the number of days accrued in the current "holiday year".

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

London, England -- (SBWIRE) --12/01/2011 -- From 6 April 2012, HMRC have greater powers to help ensure that employers pay their PAYE tax deductions or Class 1 National Insurance contributions (NICs). The new powers will allow HMRC to obtain a security from employers where there is a serious revenue risk as a result of non-payment of employees' income tax and NICs.

The new powers are drafted to target employers who deliberately try to defraud the national purse but the changes will also target businesses that build up large debts to HMRC as well as those who do not respond to HMRC's attempts to contact them in reasonable time.

The required security will, according to HMRC, usually be a cash deposit from the business or director - held by HMRC or paid into a joint HMRC/taxpayer bank account - or a bond from an approved financial institution which is payable on demand. The amount of security required will be calculated on a case by case basis. Businesses required to pay a security deposit will have the option to appeal any decision by HMRC.

In a separate announcement, the head of debt management and enforcement for HMRC has warned that anyone making late payments to HM Revenue & Customs will be pursued until the Revenue receives its share.

Dr Abani told a delegation of accountants that people making late PAYE payments will receive letters from HMRC with penalty notices attached. 'If you have been making late payments on PAYE there will be envelopes landing with penalties,' he said. He reiterated the message that those who fail to inform HMRC of problems would not be afforded leniency: 'If you have not spoken to us in time we will not remove late payment surcharges… It is very important to tell HMRC what has gone wrong', he said.

Businesses that hare having genuine financial difficulties should contact HMRC at the earliest opportunity to discuss the options available to them.

Taxing Nannies assist our clients so that they do not end up with arrears, as follows:

1.We advise all our clients at the outset as to the likely costs of nanny tax and national insurance and how much the employer should reserve on a weekly or monthly basis in addition to the net salary paid. This is particularly important where the employer agrees a net salary with the nanny, but does not realise the additional costs of nanny PAYE, employees and employers national insurance. Even where an employer agrees a gross salary with the nanny, Taxing Nannies will advise of the additional employers national insurance which is payable.

2.Where we are advised of a change in salary, we inform our clients of the revised liabilities to tax uk and national insurance.

3.Where our clients enter into nanny share arrangements, Taxing Nannies assists its clients with splitting tax codes so that payment of nanny taxes by both employers is equitable. Where there is a change of arrangement Taxing Nannies will recalculate the liabilities and advise our clients accordingly.

4.Once a quarter we write to all our clients advising them of the exact amount of their nanny taxes with details of all the different payment methods and due date for payment. We give ample notice and remind our clients of payment dates for PAYE and national insurance.

5.If our clients receive demands for tax, penalties or underpayment notices from HMRC, Taxing Nannies will check the validity of those notices and advise our clients accordingly. Nat all notices sent by HRMC are correct! If a client is unsure as to what nanny taxes have been made, Taxing Nannies have the facility to check details of payments made with HMRC.

6.Where our clients express difficulty in paying HMRC, we will advise them as to their best cause of action.

For more help and assistance with all you nanny tax and nanny PAYE needs, contact us and we will be happy to help. info@taxingnannies.co.uk

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm