Net vs Gross pay for nannies: What to ask before accepting a job

Gross pay is the amount before tax, National Insurance (NI), pension and any other deductions. Net pay is what lands in your account after those deductions. On the surface, net looks like the number that matters most, but it can shift for reasons outside your control: a new tax code, student loan deductions starting mid-year, or auto-enrolment into a pension.
Gross pay doesn’t wobble when these things change. That’s why HR systems, contracts and payslips are built around gross. It gives you a stable, comparable number, so you can judge roles fairly and avoid messy disputes later.

You’re choosing between:

• Family A: £750 gross per week
• Family B: £600 net per week (“we’ll always make sure you take home £600”)

In April your tax code is updated and your student loan kicks in.
With Family A, your net adjusts automatically and correctly. Everyone expected that.
With Family B, suddenly someone must make up the difference. Was the £600 promise after student loan? After pension? After HMRC fixes last year’s underpayment? Cue awkward conversations.

Moral: a gross figure protects you and the family when life (and HMRC) changes.

Salary is only one part of the picture. When you compare jobs, line up the same information for each role so you’re not missing hidden costs or perks.

• Gross pay per hour and per week (for the guaranteed hours)
• Overtime rate and when it starts
• Holiday entitlement (and whether bank holidays are included)
• Pay frequency (weekly/monthly) and a payslip every payday
• Pension auto-enrolment (employer contribution?)
• Student loan deductions (will yours apply?)
• Expenses (mileage, classes, outings—what’s reimbursed and how?)
• Live-in deductions/offsets (if applicable)
• Schedule reality (evenings, weekends, overnights, travel time)

If a family prefers to think in take-home, that’s fine, ask their payroll to estimate the net from a stated gross. Then put the gross in the contract.

• Tax codes change. New job, benefits, or HMRC correcting last year? Your net shifts.
• Second jobs and nanny shares. HMRC usually puts your main allowance on one job; the other job may be taxed at BR/D0. Net promises can’t keep up.
• Pension and student loans. Auto-enrolment or loan deductions can begin mid-year, reducing take-home.
• Benefits-in-kind. Perks like private medical can alter your code, and your net.

None of this is “bad”. It’s just how UK payroll works. Which is exactly why gross belongs in your offer and contract.

You don’t need a fight to get this right. Try:

• “For fairness, could we confirm £X gross per hour and £Y gross per week for Z guaranteed hours? Your payroll can share a net estimate so we all know what to expect.”
• “Let’s sign the gross figure. If HMRC updates my tax code or I’m auto-enrolled in a pension, my take-home will adjust automatically.”

Most families appreciate the clarity, especially when it avoids surprises later.

Live-in jobs sometimes use an accommodation offset/deduction. That doesn’t replace pay; it’s a specific rule. Make sure your gross salary reflects the work, and that any deduction is spelled out in the contract and on your payslip. Clarity here prevents awkward end-of-month chats.

• Student loans (Plan 1/2/4 or Postgrad) start when your gross crosses the threshold. If you begin repayments mid-year, your net falls, that’s normal.
• Pension auto-enrolment can start once you meet age/earnings criteria. You contribute, your employer contributes, and your net changes slightly.

Again: totally standard. Another reason to anchor your offer in gross.

• “Net-only” pay in the contract
• No written contract or no payslips
• “Cash in hand” instead of PAYE
• Vague or missing rules on overtime, expenses and holidays

If you see these, pause and ask for clarity in writing.

• Offer written as gross per hour and gross per week (for guaranteed hours)
• Overtime rate and trigger clear
• Holiday days and bank holidays confirmed
• You’ll receive a payslip every payday
• Pension and student loan impact understood
• Any live-in deduction documented
• Who runs PAYE and who you can contact with payroll questions

Save that list in your Notes app—you’ll use it.

We translate gross → net so you know what to expect, run PAYE correctly with clear payslips, and help sort tax codes, student loans and pension letters without the runaround. If you’d like, ask the family to loop in Lily’s Payroll during offer stage. We’ll sanity-check the numbers and keep payday drama-free.

For a fair, future-proof offer, agree gross pay, and let payroll estimate the net. Your future self (and your payslip) will thank you.