It's that time of year when you feel a little more generous and after the unexpected and unpredictable year of 2020 & 2021, you might appreciate your Nanny a little more than you have in previous years.
Your Nanny may have enabled you to work from home at times and home-schooled your children, withstood some tantrums and behavioural challenges and participated in learning at home.
Nannies are unable to work from home and with this year and last, they have taken the risk to their health to enter your own home, especially whilst the rest of the UK participated in a strict lockdown (or three).
You may like to show them this December how much you do appreciate them.
So, I hear you ask, what can I gift to my Nanny?
We asked Karen at Way2Paye Payroll Company, to share with us some key facts for December gifting.
Can I give my Nanny a Cash Christmas Bonus?
Yes you can however it should be reported on the payslip and is subject to tax and national insurance.
Can I buy my Nanny a Present for Christmas?
Yes but if it cannot be counted as a ‘trivial benefits’ you must report it to HMRC as it is classed as a benefit in kind.
What is a trivial benefit?
A trivial benefit is where all of the following apply:
· it cost you £50 or less to provide
· it isn’t cash or a cash voucher
· it isn’t a reward for their work or performance
· it isn’t in the terms of their contract
You don’t need to pay tax or National Insurance or let HM Revenue and Customs (HMRC) know about Trivial Benefits.
For any further details please contact Way2paye.
Whilst every effort has been made to ensure that the information included in this article is accurate at the point of release, this should not be relied upon as legal advice.