Employing a nanny

Employing a nanny

Employing a member of staff to work within your home can feel daunting. That’s why we’ve created this handy checklist for you to consider when hiring a new member of staff.

The 8-step employer checklist

You can work through the list and tick off each task when it’s done. Our team are always on hand to help if you have any questions.

Salary

Salary

When you employ and nanny you need to agree on the salary you will be paying and the contracted hours. Make sure both of you are clear if the salary you are agreeing to is Net of Gross.

Total cost

Total cost

Take time to work out the total cost of employinga nanny, there are tax and national insurance contributions to think about. If you need help calculating these we are more than happy to help.

PAYE

PAYE

As an employer, you must set up a PAYE scheme for your Nanny in order to pay their salary. You can choose to add our payroll service to your subscription if you would like us to take care of all of this for you.

Pension

Pension

All employers are legally obliged to offer a pension to their employees who meet certain age and salary criteria. If you would like us to enrol your nanny to a pension scheme then let us know. You can read more about pensions here

Holiday

Holiday

All employees are entitled to a minimum statutory holiday entitlement based on the hours and days they work each week. You can read the official guidance here

Contract of employment

Contract of employment

As an employer you must provide your employee with a contract of employment within 2 months of their start date. We can provide a draft template and advise you on any changes you wish to make.  

Legal checks

Legal checks

As an employer, it is your responsibility to ensure the individual you are employing is eligible to work in the UK. You can do this by requesting a copy of their passport or visa.

Insurance

Insurance

Employers Liability Insurance is a legal requirement for all nanny employers. This is to cover damages and/or claimants costs. It is often included in home insurance policies so check your policy documentation.

Learn more

Calculate Nanny Tax             Nanny Payroll as a service


You might be wondering...

What are my responsibilities as an employer?

Complying with all aspects of employment legislation - from setting up a...

Complying with all aspects of employment legislation - from setting up a PAYE scheme and workplace pension, to running payslips and making sure your nanny is paid the right amount and have all their entitlements. Sound like too much to handle? No problem, we can navigate it for you.

What even is payroll?

Payroll is the managment of employee wages and taxes. It keeps track of...

Payroll is the managment of employee wages and taxes. It keeps track of worked hours and calculates wages, taxes, national insurance, pension contributions and any other government debt or payment obligation. 

What is the difference between gross and net?

Net is the pay that your nanny will receive in the bank. Gross is Net +...

Net is the pay that your nanny will receive in the bank. Gross is Net + Employee’s NI + Tax + Pension Contributions.

How much will it cost me in total?

The total cost of employment will be Gross + Employer’s NI. Check out ou...

The total cost of employment will be Gross + Employer’s NI. Check out our Nanny Tax Calculator, to give you an idea of how much it will be.

Should I agree to a net salary or a gross salary?

If you haven’t agreed a salary yet, gross is better! A Net agreement mak...

If you haven’t agreed a salary yet, gross is better! A Net agreement makes it very difficult to calculate the total cost of employment, and parents sometimes end up with additional costs which weren’t accounted for.

It’s easier to compute your total cost of employment, and also protects you from any tax complications that the nanny may have.

What are my liabilities as an employer to HMRC?

The nanny’s income tax and employer and employee national insurance. We...

The nanny’s income tax and employer and employee national insurance. We calculate all of these on each payslip and make those contributions in your name directly to HMRC.

What are my liabilities with regards to pension?

As an employer you are obliged to enrol your employee onto a pension sch...

As an employer you are obliged to enrol your employee onto a pension scheme. It is then the decision of the employee whether they opt in or out of the scheme, you cannot choose for them. The minimum contribution levels are 5% by employee and 3% by employer (unless the nanny opts out). Please note, if you have agreed a net salary both are your duty to pay.

I am currently signed up with another payroll service, how do I sign up to you?

It is very simple to switch over. We just need your accounts office refe...

It is very simple to switch over. We just need your accounts office reference number and PAYE reference number to get started and we’ll take it from there.

How do you actually do payroll?

Our payroll team has dozens of years experience, processing 100’s of pay...

Our payroll team has dozens of years experience, processing 100’s of payslips every month. So, rest assured it is all in hand.

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