Employing a KPS
When you become an employer there are some responsibilities you need to take into consideration. A precise job description should be discussed and agreed with. It is now a legal requirement to have a written contract of employment. You should agree the terms of this contract with your KPS and finalise the contract with each party signing and keeping a copy.
Kidtection can provide a standard form contract and we are happy to advise you on how to tailor the contract to your specific requirements. Set up some guidelines for your KPS, in particular discuss any house rules. Think about what kind of relationship you want with your KPS e.g. if you would like it to be quite formal then state this at the beginning.
Legal obligations and KPS tax
If you employ a KPS in the UK and you pay your KPS more than £140 per week you have the same legal responsibilities as a commercial employer and the law requires you to:
• Register as an employer
• Set up and operate a PAYE scheme on your KPS’s behalf
• Keep tax records on his behalf
• Provide your KPS with regular payslips
• Provide your KPS with an employment contract
• Pay regular income tax and National Insurance Contributions
• Pay employer’s National Insurance Contributions
• File an employer’s annual tax return
If you are paying your KPS £200 cash, it means you have actually paid your KPS £222 gross and have to account to HM Revenue & Customs for the £13 tax and £9 employee National Insurance (NIC) deducted from gross pay. In addition you also have to account for the Employers National Insurance of £11. The total cost is therefore £233 to the employer of which the KPS receives £200 and the Inland Revenue receives £13.
National Insurance Contributions go towards your employee’s entitlement to unemployment and state pension benefits. Nannies are increasingly aware of their rights as employees and an employer who takes care of their PAYE properly will be considered a good employer in this respect and enjoy the increased confidence of their KPS.
Becoming an employer for the first time can be daunting. However there are some great sites that can help you. Fortunately, these are inexpensive and also offer plenty of free advice. Nannytax has 19 years’ experience and is the recognized market leader in KPS employment. Nannytax can be found on www.nannytax.co.uk. Another similar service is Domesticpaye, which can be found on http://www.agencypayroll.co.uk/.
There is a considerable difference between the net wage and the true cost of employing a KPS. For example, hiring a KPS at £500 – £600 (net) per week will actually work out to be £742 – £909 (gross). Parents are advised to find out the true cost before agreeing on a net wage. Use this calculator from Nannytax to find out how much a KPS will cost.
Rates and Fees
Kidtection does not charge a registration fee.
VAT is not charged on invoices issued by Kidtection. Therefore families already save 20% on other KPS agencies.
Please note that all our fees are independent of the KPS salary.
|• Live in position||5 x weekly net salary (Overseas 16% of annual net salary)|
|• Live out position||4 x weekly net salary (Overseas 16% of annual net salary)|
|• Temporary KPS||£20 per day/£90 per week (Overseas £120 per week)|
|• Holiday KPS||£25 per day/£115 per week|
|• Trial period fee||£30 per day (Overseas £40 per day)|
Holiday and Temporary KPS are employed from Monday to Friday.
Please contact us for information on event childcare and other options.
Please note the full agency fees will become payable when a KPS candidate introduced by the agency is offered and accepts employment with the client, either by verbal or written agreement, and not at the commencement of employment.