2021-22 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.
Annual Gross (Based on standard tax code)
Up to £12,501 0%
Over £150,000 45%
Monthly Gross NI Paid
Up to £520.00 0%
> £797.00 Employees start paying NI
> £737.00 Employers start paying NI
£797.00-£4,189.00 12% paid by the employee
£732.00-£4,189.00 13.8% paid by the employer
Above £4,189.00 2% paid by the employee / 13.8% paid by the employer
With effect from April 2020, 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 thresholds are £382.59 a week or £1,657.91 a month (before tax and other deductions).
The thresholds are £524.90 a week or £2,274.58 a month (before tax and other deductions). They change on 6 April every year.
The thresholds are £403.84 a week or £1,750 a month (before tax and other deductions).
All employees are entitled to redundancy pay after 2 years of complete service.
1.5 weeks’ pay for each full year of employment after their 41st birthday
a week’s pay for each full year of employment after their 22nd birthday
half a week’s pay for each full year of employment up to their 22nd birthday
Weekly pay is capped at £538. The maximum amount of statutory redundancy pay is £16,140.
We advise contacting us directly to accurately calculate redundancy pay.