How Much Does a Nanny Cost in London?
This question is the most popular enquiry we get from parents.
How much does it cost to hire a nanny in London? Here are a few things to consider when researching your budget for a Nanny.
Becoming an Employer of a Nanny
A nanny is an employee, therefore when you hire a nanny you are becoming a domestic employer. As an employer, you will be responsible for the nanny’s full salary, tax, National Insurance, pension and employer tax. This full list of costs is known as Employers Total Cost, and this is what you need to look for in tax calculators. You will also be responsible for taking out Employers Liability Insurance if this is not covered in your house insurance. Policies are usually around £75-100 for the year.
The Nanny Search
HOW you find your Nanny will also impact your costs. If you are using a nanny agency, their fees are calculated on the nanny’s salary, usually on average around a month’s gross salary, or a percentage of the nanny’s annual salary. Childcare websites and job boards charge a monthly membership fee, averaging anything from £25-£70 per month.
Nanny Costs and Rates
What TYPE of Nanny will also affect your costs, as different types of nannies have different rates. Research what type of nanny might suit your family’s needs. Check out our other blog on the different types of Nannies, and their average rates.
Nanny Payroll
The other associated cost is if you enrol a nanny payroll company, to help with paying your nanny. Their rates on average range between £250-£300 per year. This should include HR support in setting up a contract and working out tax contributions and holiday entitlements. Some also offer employment HR advice.
Expenses for Your Nanny
Once you have hired your nanny, expenses need to be considered. This is for children’s activities and classes, day-to-day petty cash, if your Nanny drives and uses her own car, mileage and wear and tear on her car will need to be compensated. This is usually around 45p per mile.
Find and Hire a Local Nanny Today
At the Nanny Connection, we endeavour to fill all types of nanny vacancies in and around London and the surrounding areas. We understand how important it is to find a local nanny who can offer you the best possible childcare and support. We have spent years cultivating a recruitment process that puts you firmly in control while we position the right candidates for your consideration.
If you have any other questions or need any information on the cost of hiring a nanny across the whole of London, do contact us!
