Nanny Tax and Payroll

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.

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. 

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

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.

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.

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.

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.

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.

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