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  • Writer's pictureMarine Lienard

How to declare a nanny in the UK?

Understanding legal responsibilities

1. Employment contract:

  • Begin by drafting a comprehensive employment contract. This should include terms such as working hours, duties, salary, and any other relevant details. Both you and the nanny should sign this contract.

2. National minimum wage:

  • Ensure that you pay your nanny at least the National Minimum Wage. This rate may vary based on the nanny's age and experience. Check the official government website or consult with relevant authorities for the latest information.

3. Tax and National Insurance contributions:

  • Register as an employer with HM Revenue and Customs (HMRC) before your nanny's first payday. You can do this online on the HMRC website. Once registered, you'll be responsible for deducting Income Tax and National Insurance contributions from your nanny's salary.

Payroll responsibilities

1. Payslips:

  • Provide your nanny with regular payslips. These should detail their earnings, deductions, and net pay. Many payroll software options are available to help with this process.

2. PAYE (Pay As You Earn):

  • Operate a PAYE system. This means deducting Income Tax and National Insurance contributions from your nanny's salary and paying these to HMRC. This information should be included on the payslip.

3. Paying HMRC:

  • Submit your nanny's payroll information to HMRC in real-time using the online PAYE system. This includes details of their earnings and deductions. Pay any taxes owed to HMRC on time.

Tax credits and benefits

1. Childcare vouchers:

  • If you or your partner are employed, check if you're eligible for childcare vouchers. These can be used to pay for registered childcare and can provide tax and National Insurance savings.

2. Tax-Free childcare:

  • Explore the Tax-Free Childcare scheme, which can help with childcare costs. This is a government scheme that provides financial support for working parents.

Other considerations

1. Insurance:

  • Consider liability insurance. While not mandatory, having insurance in place can offer protection in case of accidents or injuries while your nanny is working.

2. Holiday and Sick Pay:

  • Clarify the terms of holiday and sick pay in the employment contract. Legally, your nanny is entitled to a certain number of paid holidays and sick leave.

3. Pension scheme:

  • Depending on your nanny's age and earnings, you may need to enroll them in a workplace pension scheme and make contributions.

4. Continuous communication:

  • Keep communication open with your nanny. Discuss any changes to their employment terms, and be transparent about any adjustments to working conditions or responsibilities.

By following these steps, you can ensure that you are meeting your legal obligations as an employer and providing a secure and compliant work environment for your nanny. Remember to stay updated on any changes in regulations to ensure ongoing compliance. If in doubt, seek advice from professional advisors or government authorities.

Marine, mother and founder of St Pancras Recruitment


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