Nanny tax changes from April 2012
Most nannies working in the UK are affected by changes to Income Tax and National Insurance. In his Autumn Statement on 29 November 2011, George Osborne announced the changes that will take effect from April 2012.
Here are the changes that will affect most nannies*:
- The personal allowance goes up by £630 to £8,105 a year. This leaves an extra £2.42 a week in your pocket.
- The start point for National Insurance goes up by £7 to £146 a week. This leaves an extra 84p a week in your pocket.
- So overall, most nannies will pay £3.26 a week less Income Tax and National Insurance.
Employers also get a break, with an £8 increase in their NI thresold to £144 a week, saving them £1.10 a week.
Based on information published as at 29 November 2011 – errors and omissions excepted.