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Please note: the government guidelines have changed since the publication of this article. For the most up to date guidelines, please visit https://www.gov.uk/.
As a nanny employer, you may be eligible for financial help from the government.
The Chancellor announced on Friday, 20 March 2020, that the Government will reimburse 80% of the wages of those who would be otherwise laid off by their employers because of the impact of COVID19.
The affected employees will be put on “Furlough Leave”. But what does this mean and how will it operate in practice? Understandably, at this stage, details around the scheme, are scant.
However, we wanted to share a few pointers that we have gathered so far from various experts:
- All UK employers can access the scheme (e.g. limited companies, sole traders, LLPs, charities etc.), so nanny employers (i.e. families) should be included as well.
- The scheme is designed to help employers retain those employees who would be otherwise “laid off”, by which we understand to mean made redundant or put on a period of “lay off” (an employment law term meaning a temporary period when employees are required to take unpaid leave because of a downturn in work).
- Employees will have to be designated by their employers as “furloughed” and notified of this designation.The vast majority of contracts of employment will not contain the right of employers to put employees on Furlough Leave. Therefore, employers wanting to make use of the scheme will have to obtain employee consent to vary their contracts of employment to allow the Furlough Leave.
- Whilst on Furlough Leave, employees can be paid 80% or 100% of salary. The Government will reimburse the employer 80% of salary up to £2,500 per month for each employee.
- The employer can choose to make up the remaining 20% of salary themselves. If they decide not to do this or are not in a position to do this, they should make that clear and make sure that the employee also agrees to a deduction to their salary of 20%.
- In order to participate in the scheme, the employer should submit information to HMRC about the employees in question and details of their earnings via a new online Portal (still to be set up).
- HMRC will reimburse 80% of employment costs (thought to include employer pension contributions and employer national insurance contributions) up to £2,500 per employee per month.
- To qualify the employee must not carry out any work for the employer for the furlough period.
- The scheme will run for three months from 1 March 2020, but the Government has said it will be extended if necessary.
Please note that this job retention scheme is not the same as the changes that the Government has introduced to statutory sick pay to help those sick and self-isolating. The Government will cover for up to 14 days of statutory sick pay for those employees who have been affected by COVID19. The job retention scheme is therefore much broader and generous.
Please also note that the position of the self-employed is different and the assistance for the self-employed so far is limited.
FAQs
What if my nanny is not on a contract and we don’t declare her wages to HMRC?
If nanny’s wages have not been declared so far, the employer is unlikely to be able to claim the support under the job protection scheme.
What if I have employed a nanny just recently and haven’t had a chance to sort out payroll yet?
If you haven’t yet sorted out payroll and HMRC compliance, then this should be done as soon as possible. Whether the scheme will apply for employees (nannies) who were recently added to payroll, and especially those added to payroll after the announcement remains to be clarified.
If the nanny continues to work for me, can I still get the 80% financial support from the government?
This seems unlikely at this stage.
For more information, take a look at our additional resources:
- Legal and employment considerations for nannies and their employers during the corona virus outbreak here
- How will corona virus affect the self-employed maternity nurses and the families they work for here
If you need any further support or guidance, don't hesitate to get in touch via hello@mytamarin.com or call +442034320234. Our team is here for you, and we’ll continue to keep you updated and informed.
Should you need a temporary nanny during the COVID19 outbreak, please click here.
Disclaimer
Tamarin Group Limited (trading as myTamarin) has prepared this document in conjunction with a legal advisor – but please note that myTamarin is not a legal advisor and does not offer legal advice and does not guarantee this document in any way. Therefore, if you feel you need legal support, then please ensure you seek it from a qualified professional. myTamarin will take no responsibility or liability in any for any matters arising from this post.
Still unsure about what to do next? Check out our FAQs on what CV-19 means for nanny employment.
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