PANN is committed to nannies and campaigns for improved professional status for this large and undervalued workforce. We also recognise that, through changes introduced last year by the chancellor of the exchequer, nannies now have the option to set up their own limited company, making considerable tax savings. This is not a 'tax loophole' - it is perfectly legal - and we know from our membership that many nannies are looking at the schemes available.
But PANN has not and does not endorse any scheme that sets nannies up as limited companies. As the only trade union representing nannies, it would have been extremely negligent of us if we had not looked at the schemes being set up. Surprisingly, we were approached by only one, Nyman Linden.
Their approach is in the interest of the nanny only, and they are marketing their product to the nanny - not the employer. Of course, if the nanny wishes to pass on any of the savings to the employer, she is free to do so.
All other such schemes we have been made aware of are focusing on the benefits to the employer, who might not pass on any benefits to the nanny.
Nyman Linden sought a meeting with us, recognising our reputation and knowledge of nannies in employment. They invited our legal team to assist their legal team in drawing up a model contract for nannies, and they invited us to offer training to their staff to build on their knowledge of the varied terms and conditions of employment of nannies. In our view, they have done all they can to ensure that nannies have complete ownership of the scheme. We are therefore fully aware of their scheme as opposed to others. However, we do not endorse any scheme.
We wait with interest to see how these schemes take off and how the benefits or pitfalls unfold. We will advise nannies when considering changing their employment status that they should seek legal advice and look at as many options as possible before making their choice.