Tax Concerns

[arrymong]

My daughter has been offered a job as a nanny in Central London. The job comes with a car and a flat. My question is this, would these be taxed as "benefits in kind"? This would make a massive difference as the wage is not tremendous but living rent free in London would more than make up for it! However, if HMRC are going to clobber her then there would be no point in taking the job.
Any advice would be much appreciated

Thanks dudes

[fiction-factory]

The car- definitely.
The flat- probably., especially if it is not the house she will be working in.
Still sounds a pretty good deal to me though as nanny jobs go.

[fiction-factory]

Does she need the car? If she uses it only for business and cannot use it for personal use then the tax situation is different

[EdmundD]

This may help:

https://www.gov.uk/expenses-and-benefits-a-to-z

An employer is required to report to HMRC any benefits provided to an employee (such as a car)and the employee's tax code is adjusted accordingly.

Presumably she would have to register for council tax?

[Guilbert53]

This sounds very suspicious.

Why would anyone need to offer someone a car for a job in Central London where owning a car is a disadvantage.

I would double check this is a genuine job.

[fiction-factory]

i must admit, it sounded odd to me guilbert. I hope there is no sort of admin fee to pay

[scooping]

I too would be worried about the car and is the flat at her employer's or elsewhere? May be genuine but can she find out more about her prospective employer? Has he/she used a nanny before? Did she get the job through an agency?

[scooping]

If your daughter has not previously been a nanny why did they select her? Were there a series of interviews?

[EcclesCake]

Accomodation and vehicle is pretty standard for a nanny. Well, amongst my friends and family anyway.

[fiction-factory]

Thanks Ecclescake. Is it common in Central London though with all the issues of parking restrictions, congestion charges?

[jno]

is the car required for work? (eg ferrying kids to school?)

If not, I'd be inclined to ask for money instead; public transport (when not being blown up) is generally much quicker, particularly in the middle of London.

[goodgoalie]

Has your daughter been offered the position directly by the family for whom she will be the nanny? Is the car so the children of the family can be driven to school, clubs etc? If not, I would be wary of any kind of agency asking for admin fees or any kind of money upfront.

[EcclesCake]

FF, some parents don't want their precious children exposed to public transport, a car is by far the best, safest and most convenient way to convey Tristram to his trumpet tuition........

[jno]

finely alliterated, Eccles

[fiction-factory]

I suppose it could be Princess Charlotte's nanny. I can see that some would provide whatever was needed. I am simply saying that care should be taken here unless the nanny is experienced and /or known to the client

[fiction-factory]

Any updates on this, arry? Hope the answers helped.

[fiction-factory]

Has she decided what to do yet, arrymong?