professional payroll and taxcare for nanny employers
Your obligations
When you take on a nanny, you also take on the role of an employer with all the formal payroll obligations that entails. So when this is what you really want to be doing, you will instead find yourself having to:
- register as an employer (if your nanny earns more than £102 a week or £442 a month)
- set up and operate a PAYE scheme for your nanny with HMRC
- process your new nanny’s P45 or P46 and ascertain both her tax code and her national insurance category
- provide your nanny with payslips every payday and keep all necessary payroll records
- calculate and pay tax and both employer’s and employee’s national insurance contributions to the Revenue every quarter based on your nanny’s gross pay. As nannies often agree a net (ie take home) wage with their employers, this net amount needs to be “grossed up” before the deductions can be calculated
- file end-of-tax-year employer returns with the Revenue
- provide your nanny with a P60 at the end of each tax year
- give your nanny a P45 if she leaves your employment
- you may also have to deal with statutory sick, maternity, paternity or adoption pay and maybe also student loan deductions or attachment of earnings orders
- you must also ensure your nanny is entitled to work in the UK. Information to help with this can be found at http://www.ukba.homeoffice.gov.uk/employers/preventingillegalworking/ or you can call the Home Office helpline on 0845 010 6677
- in almost all circumstances you must also ensure that your nanny is earning at least the national minimum wage, which for employees aged 21 and over is currently £6.08 an hour (as from 1 October 2011)
Quite an undertaking, isn't it? So why take on all of this, when you could let our comprehensive service deal with everything for you instead?