Legal responsibilities as an employer

If you employ a nanny you have a number of legal responsibilities as an employer.

By law, you must:

  • Register as an employer
  • Set up and operate a PAYE (Pay As You Earn) scheme on your nanny’s behalf
  • Pay regular Income Tax and National Insurance Contributions
  • Pay Employer’s National Insurance Contributions
  • Keep tax records on your nanny’s behalf
  • Provide your nanny with regular pay slips
  • Provide your nanny with an employment contract (for permanent contracts, this must be in place by the day the nanny starts their position)
  • File an employer’s annual tax return
  • Have employer’s liability insurance in place
  • Enrol eligible employees into a qualifying pension scheme
  • Provide a Privacy Notice to outline how you will use, process, disclose, protect and retain Personal Data. This must be concise, transparent, intelligible, easily accessible, and in clear and plain language so that your nanny can easily understand. You can find some useful information about how to write a privacy notice on the Information Commissioner’s Office’s website.

PAYE and National Insurance contributions

It is your responsibility to register to pay PAYE and National Insurance Contributions on your nanny’s behalf. If you cut corners by either not registering for PAYE / or registering and only part declaring your nanny’s salary to save yourself money – you are committing a criminal offence and may receive a substantial fine. In addition, these payments count towards your nanny’s entitlement to Statutory Sick Pay, Statutory Maternity Pay, unemployment and state pension benefits. Your nanny will also need an accurate record of their pay when applying for a loan or mortgage.

If this all sounds a bit daunting, help is at hand. There are a number of nanny payroll providers who can help below.

Nannytax discount code for clients

We have an amazing exclusive discount for clients registering with the Norland Agency and Newly Qualified Nanny team to get 50% off their first year’s subscription to the Nannytax payroll services.

For more information, contact the relevant team via the details below.

 

Contact the Norland Agency

+44 (0)1225 904030 [email protected]
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