Nanny/childminder - employer taxes..

[zippitydooda]

Hi everyone,

I have a few questions on hiring a nanny in my home to look after my son while I go to work (self employed consultant).

If a nanny wants say E400/week - does that mean I just pay 10.75% 'er PRSI on top of that to the Revenue once a year?

Also - if I operate a limited company and she is my employee - can I deduct her costs from my business income (consultancy fees) before settling my tax affairs?

Thanks for the feedback - I'm desperately trying to work out the struggle between decent childcare and affordability!

Z

 

[Domo]

The employment of a nanny is not part of your busines - it is not a cost incurred wholly and exclusively in the course of the business, therefore you can't set these costs against your income.

With regard to her employment with you, you will have to operate PAYE/PRSI on her income, and pay the tax and PRSI over to the Revenue - I think you may be able to pay every 3 months (need to check with Revenue, but you will have to produce payslips for her on a weekly or monthly basis, and register as an employer with the Revenue.