Hiring A Nanny – Employer Responsibilities
Hiring a nanny can become complex, particularly if its a nanny share. As a domestic employer, you have the same employer responsibilities as a commercial employer. If you employ a nanny and pay them above the weekly threshold of £182 per week (2013/14), you are legally required to register yourself with HMRC and operate a PAYE scheme.
You will need to consider the following:
- Registering as an employer with HMRC
- Setting up and operating a PAYE scheme on behalf of your nanny
- Keeping tax records on nannies behalf
- Providing your nanny with monthly payslips
- Providing an employment contract
- Paying regular income tax and NI contributions
- Paying employer’s NI contributions
- File an employer’s annual tax return
NannyTax offer very good nanny pay-roll services and will help you every step of the way. They offer a complete service ranging from setting up a PAYE schemes and notifying employers of quarterly tax and NI payments, to providing weekly or monthly payslips and issuing P45’s and P46’s every time a nanny joins or leaves their employment. They also keep full tax records on every subscriber’s behalf.