Add Your Idea

Stop treating parents who use a nanny as if they are an employer

Comment 1st July 2010

Problem created by overbearing regulation

The State makes using a nanny very difficult, because it treats the parent as an employer of the nanny.  The implication of this is that:

-         The parent must calculate and pay all tax and NI on the nanny’s behalf;

-         The parent must adhere to statutory employment rights (e.g. provide statutory benefits, meet employer’s health and safety obligations in the workplace, obtain employer’s insurance etc); and

-         The parent must make sure the nanny has the right to work in the UK etc

 

Meeting these obligations is daunting and expensive.  The parent must nevertheless do this in their own time and at their own expense, all paid for out of taxed income.

 

Effect of overbearing regulation

This situation creates a strong disincentive to give a nanny a job.  This makes it less likely that it will be cost effective for the parent to get a job.  This is bad for:

-         The State, which receives less tax and perhaps has to support the parent and nanny;

-         The nanny, because her services are less attractive;

-         The parent, who does not fulfil their economic potential; and

-         The economy, which has lost out on two potential jobs.

">Image source-->




Background

For parents with several young children, for both to get a full time job is logistically very difficult.  Making use of a nanny/ au-pair is often the most convenient option for childcare.

Suggestion

Anything that makes the provision of childcare easier is welcomed.  For example, individuals, who are not running a business, could be exempted from statutory employment regulations when using a nanny.

Why does this matter?




Problem created by overbearing regulation

The State makes using a nanny very difficult, because it treats the parent as an employer of the nanny.  The implication of this is that:

         The parent must calculate and pay all tax and NI on the nanny’s behalf;

         The parent must adhere to statutory employment rights (e.g. provide statutory benefits, meet employer’s health and safety obligations in the workplace, obtain employer’s insurance etc); and

         The parent must make sure the nanny has the right to work in the UK etc

 

Meeting these obligations is daunting and expensive.  The parent must nevertheless do this in their own time and at their own expense, all paid for out of taxed income.

 

Effect of overbearing regulation

This situation creates a strong disincentive to give a nanny a job.  This makes it less likely that it will be cost effective for the parent to get a job.  This is bad for:

         The State, which receives less tax and perhaps has to support the parent and nanny;

         The nanny, because her services are less attractive;

         The parent, who does not fulfil their economic potential; and

         The economy, which has lost out on two potential jobs.

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet) /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} Background For parents with several young children, for both to get a full time job is logistically very difficult.  Making use of a nanny/ au-pair is often the most convenient option for childcare. Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} Suggestion Anything that makes the provision of childcare easier is welcomed.  For example, individuals, who are not running a business, could be exempted from statutory employment regulations when using a nanny. " />

Highlighted posts


Comment on this idea

Good idea? Bad idea? Let us know your thoughts.


Back to top
Add Your Idea