2019-20 Tax, NI, Student Loan & Redundancy
All employees, including temporary and part time, must make Tax and national insurance contributions.
Employers, including domestic employers, legally have to make Tax and national insurance deductions from a nanny's wage and pay this to the government on the nanny's behalf.
Weekly Gross (Based on standard tax code)
Up to £240.00 0%
Over £3,125.00 45%
Weekly Gross NI Paid
Up to £118.00 0%
£166.00-£962.00 12% paid by the employee / 13.8% paid by the employer
Above £962.00 2% paid by the employee/ 13.8% paid by the employer
With effect from April 2019, the thresholds for making Student Loan deductions under the 2 schemes are as follows.
The nanny will pay 9% student loan on everything they earn over:
Plan 1 - £18,935 annually (£1,577.92 a month or £364.14 a week)
Plan 2 - £25,725 annually (£2,143.75 a month or £494.72 a week)
The DfE has introduced a new loan type from 6 April 2019, Postgraduate Loan (PGL). The threshold for 2019/20 is £21,000. Earnings above £21,000 for PGL will be calculated at 6%.
All employees are entitled to redundancy pay after 2 years of complete service.
Age Redundancy payment due
18 to 21 Half a week’s salary or £254.00 whichever is lower
22 to 40 One week’s salary or £508.00 whichever is lower
41 & over One and half week’s salary or £762.00 whichever is lower
We advise contacting us directly to accurately calculate redundancy pay.