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.