When a nanny comes to work for you, looking after your house and your children, she is working for you in her capacity as an employee and you will be her employer. In the vast majority of cases a nanny cannot be self-employed and therefore as an employer you have the same obligations as a commercial employer (please refer to http://www.parentalchoice.co.uk/self-employment-and-nannies/ for more details). These responsibilities are to provide good working conditions, a reasonable salary, an employment contract and make tax and national insurance arrangements to cover yourself and your nanny. In addition the law requires you to:
• Register as an employer
• Set up and operate a PAYE (Pay As You Earn) scheme on your nanny’s behalf
• Keep tax records on their behalf
• Provide your nanny with regular pay slips
• Provide them with an employment contract
• Pay regular income tax and National Insurance Contributions
• Pay employer’s National Insurance Contributions
• File an employer’s annual tax return
• Have employer’s liability insurance in place.
This all sounds very onerous but in fact if you get a payroll agency to do the registration, payslips and tax for you (e.g. Parental Choice www.parentalchoice.co.uk) and talk to a childcare insurer for the insurance, all of these can be easily taken care of, leaving the employment contract.
Sarah-Jane Butler, founder of Parental Choice, the essential “one-stop shop” to help you combine career with childcare. For more information on your career and childcare options, see the Parental Choice website: www.parentalchoice.co.uk.