How to hire a nanny: ask the expert

I am considering employing a nanny, but am worried about the responsibilities this places on me as an employer. What are the main issues I need to consider? Is there support available?

The most important thing to remember is that nannies cannot be self employed, so it is your responsibility to make sure her salary is declared in full to HMRC and tax and National Insurance contributions are deducted from her salary. As a nanny employer you have the same responsibilities as a commercial employer and the law requires you to:

– Set up and operate a PAYE (Pay As You Earn) scheme on your nanny’s behalf
– Keep tax records on her behalf
– Provide your nanny with regular payslips
– Provide her with an employment contract
– Pay regular income tax and National Insurance Contributions
– Pay employer’s National Insurance Contributions
– File an employer’s annual tax return
You should also make sure that you agree a gross salary with your nanny. If you instead agree a net salary you are effectively signing a blank cheque and you could end up paying a lot more than you had expected.

These are just some of the issues to consider, but to make life easier you can you use a service like Nannytax. Nannytax acts as your agent and deals directly with the Inland Revenue on your behalf and we can transform the hassle of being an employer into peace of mind.


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