A is for Appraisal. Ask for an annual appraisal and pay review to be written into your contract or letter of appointment. This guarantees that these issues will be formally raised every year. It also gives you and your employer the opportunity to raise questions about working practices, routines or other arrangements.
B is for Benefits. No benefits are routinely provided for a newly-qualified or first-time nanny, but some on offer could range from 'tools of the trade' such as a mobile phone or use of a car, through to perks such as membership of a local gym or stabling for a horse. Perks are more likely to be offered once you have settled into the job.
C is for Contract of Employment. Your employer is required by law to provide you with at least a simple outline of this no later than eight weeks after you start working for them. This should outline all the main terms and conditions of your employment and serves to protect you both from each other's unreasonable or arbitrary behaviour.
D is for Dialogue. There is no substitute for keeping channels of communication open between you and your employers. You both should feel able to raise any concerns you have before they blow up into a big issue.
E is for Experience as an employee. As well as developing your practical skills as a nanny you should make a point of learning at least the basics about what paperwork your employer must do on your behalf. Your next employer may be completely new to this and you can then be in a position to help them to get it right - and earn extra brownie points in the process!
F is for Forms. A P45 when you join or leave a job. This tells your new employer how much you have earned and been taxed so far this tax year and which tax code to apply for you. A P46 to complete in your new job if you don't have a P45 from previous employment. A P60 Annual Summary which your employer should provide at the tax year end. This shows your total earnings, tax and National Insurance paid for the year. You will need to show this when applying for a personal loan or mortgage.
G is for Gross pay. All UK employees are paid a gross wage from which tax and NI are deducted to arrive at a net, that is, take-home, wage. But many agencies, nannies and employers agree a net wage. This can lead to much confusion, as the equivalent gross depends on a number of variable factors such as your tax code and whether you have more than one job. So the more you learn to think in terms of gross pay - which is what the rest of the employed population do - the better.
H is for Holiday pay. After completing an initial three-month period of work you are entitled by law to a minimum of four weeks paid leave a year (which can include bank holidays). If you work part-time you have exactly the same entitlement but pro-rata the number of days a week you work in that job.
I is for Income Tax. This is your main contribution to the Exchequer, which includes government spending on health, education etc. Try to see this as something positive and worthwhile from which everyone in society, including you, benefit. I is also for Insurance cover. Your employer should take out employer's liability cover to protect you in the event of your having an accident while on their premises. They can usually arrange this as an extension to their household insurance.
J is for Job description. This is normally included in your contract and should make clear what you are and are not expected to do. If your job description includes items to which you object, such as general cleaning or other housework, then express your objection and ask for it to be rewritten.
K is for Keeping Tax Records. Your employer is required to keep records on your behalf to which you are entitled to have access, for example if a dispute arises. This is a time-consuming responsibility for them and carries quite heavy Inland Revenue penalties for getting it wrong.
L is for Living-in. Although they may earn slightly less, live-in nannies are generally better off than daily nannies since many of their living costs, such as food, warmth and accommodation, are met by their employer. You can live as part of the family household, which means you can be paid below the minimum wage rate, or in separate accommodation your employer provides, which means they can claim a small offset - up to 19.95 a week - from the minimum wage rate to cover some of their costs. But separate accommodation may be treated as a taxable benefit by the Inland Revenue, which means paying extra tax.
M is for the Minimum Wage. This is currently 3.20 an hour (gross) for employees aged between 18 and 21 and 3.70 an hour for those aged 22 and over. The latter rate will rise to 4.10 an hour from October of this year. M is also for More than one job. If you do two or more part-time jobs in a week you should make sure that your employers are aware there are tax issues, such as splitting your tax code between employments, which they should look into.
N is for National Insurance. This consists of an employer's and an employee's contribution. These are posted to your individual record held by the Contributions Agency and count towards your entitlement to future state benefits such as your pension.
O is for Ostrich. Don't bury your head in the sand when it comes to your finance and pay arrangements. Your employer may be as inexperienced at employing you as you are at working for them. Keep an eye out to see that they are completing the necessary paperwork on your behalf - or at least that you get your pay and payslips on time!
P is for Payslips. Your employer is required by law to provide you with weekly or monthly payslips showing your gross wage, tax and NI deductions and net pay. You should keep these, as you may need them when applying to rent a flat or take out a loan. P is also for PAYE (Pay As You Earn) - the tax scheme under which you are employed and which your employer has to operate on your behalf. They should contact their local tax office to set one up.
Q is for questions. Don't be afraid to ask your employer, or your local tax office, if you are not clear about your pay arrangements or any other employment issues.
R is for Realism and for wage Rates. If you are a newly qualified nanny you cannot expect to earn what one with several years experience earns. Likewise, if you take a job outside of London and the Home Counties you should not expect to be paid as much as nannies in more affluent areas. Learn to balance your salary expectations with other equally important considerations, such as finding a family you're happy to work for and gaining valuable experience in your first job.
S is for statutory Sick pay. You qualify to receive this from your employer after the first three working days off sick, either as part of your wage or instead of it, depending on what your contract says. S is also for the new Stakeholder pensions, an inexpensive and flexible form of private personal pension. The earlier you start contributing, the longer your pension has to accumulate into a useful lump sum by the time you retire.
T is for Tax Code. This tells your employer how much tax to deduct from your gross pay. The current individual code 453L means that the first 4535 a year you earn is tax free (but spread over 52 weeks - ie, just over 87 a week). Your tax code could differ from this norm for several possible reasons. T is also for Training. To progress your career and keep your skills fresh you should check out what short courses are available. Any further qualifications you gain this way will also look impressive on your CV.
U is for Umbrella. Don't forget to put some money by for a rainy day. The habit of saving is one of the few protections you have against the unexpected circumstances that life can throw at you at any time.
V is for Vehicle. If you are provided with a car by your employer then you may have to pay tax on petrol and running costs for your own private use. If you provide your own car then you will need to agree to be reimbursed by your employer for a suitable proportion of petrol and running costs.
W is for Working Time. Nannies and other domestic employees are exempted from the law governing the maximum number of hours a week that you can work. But you are entitled under the same legislation to rest breaks during the day which, due to the nature of the job, should be taken when a suitable opportunity arises, rather than at set times.
X is for eXpenses. Not to be confused with benefits, these are those small items you may have to pay for out of your own pocket - like ice cream on a sunny day in the park - and then reclaim from your employer. Remember to keep invoices or till receipts wherever possible or keep a note of amounts as you spend so you can support your claim to be reimbursed later on.
Y is for Yawn. Financial matters have this effect on most people, so if you've got this far you've done very well. But if you're just starting to nod off, then...
Z is for ZZZZZZZZZZZZZZZZZZZZZZZ Stephen Vahrman is the proprietor of the payroll service Nannytax
