Becoming a nanny employer can be daunting for many parents especially if they have never employed a nanny before. Thankfully there is help available from the professionals at Nanny Tax.

Becoming a nanny employer

When you employ a nanny in your home you get the ideal solution to your childcare needs, but you also become an employer, which entails certain responsibilities. The nanny is reliant on you to perform your duties as an employer in the exact same way as commercial employees rely on the companies that employ them.

Here are some of the key duties that you must carry out when you become a nanny employer:

Payroll

You will need to administer payroll, paying Tax and National Insurance Contributions, and provide your nanny with a payslip each time you pay her. This not only keeps you on the right side of the law, but also makes your nanny eligible for certain benefits such as a state pension, and job seekers allowance should she become unemployed.

Pensions

Automatic Enrolment Workplace Pensions are now a requirement for UK employers, meaning you may have to enrol your nanny into a workplace pension scheme if she qualifies. The aim of automatic enrolment pensions is that the government, employer and employee all contribute to a workplace pension that will help the employee when they reach retirement age as an addition to the state pension.

Insurance

Employers Liability Insurance is a legal requirement for all employers in the UK, including nanny employers. This means you will be able to provide financial compensation if the nanny gets hurt or becomes ill as a result of her work and you are liable.

See here for further information. If you wish, Nannytax can take all of this off your hands.

Nanny Contract

All nannies should be provided with a contract of employment which should include a list of duties that is expected and agreed by both the employer and the nanny.

Right to Work in the UK

Make sure that the nanny that you employ has the right to work in the United Kingdom.

Tax-Free Childcare

Tax-Free Childcare is a new government scheme to help working parents with the cost of childcare.

With Tax-Free Childcare, families can open an online Childcare Account for each child to help with their childcare costs. For every £8 they pay into a Childcare Account, the government will automatically pay in an extra £2, up to a maximum government contribution of £500 per child every three months (£1,000 for Special Needs children). This money must be used to pay for childcare, and can be used to pay a nanny.

To be eligible for Tax-Free Childcare parents must both be in paid work, earning at least an average of £115 a week and not more than £100,000 a year each. The Nanny must be registered with a regulatory body, i.e. Ofsted, and must also sign up to Tax-Free Childcare.

Find out more about Tax-Free Childcare here: www.nannytax.co.uk/financial-support/new-government-proposals

Nanny Tax can either help you with your nannies payroll as a standard service or if you would prefer an end-to-end nanny payroll service with minimal involvement, this premium service is also available.

If you would like Christian Nannies to help you find the right mother’s help, junior nanny or nanny for your family a link below will direct you to the Families Registration page:

 https://www.christiannannies.co.uk/families/families-registration/

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