The Nanny Tax Calculator

The Nanny Tax Calculator

This calculator will help you understand the total cost of employing a nanny and how much the nanny will take home.

Get your FREE step-by-step guide to managing Nanny Tax & Payroll!

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Employing a Nanny             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.

Get your FREE step-by-step guide to managing Nanny Tax & Payroll!

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