Families need to have Employer’s Liability Insurance in place when employing a nanny. Some home insurance policies already have this in place, however please do confirm your cover with your insurance provider.
Parents need to ensure that their home is safe and a good working environment, so that the nanny is able to fulfil their duties.
If you require the nanny to drive your motor vehicle, then motor vehicle insurance will be required.
The family (employer) is responsible for paying the nannies (employee) Income Tax, Employee’s National Insurance Contribution’s and the Employee’s Pension Contribution’s (if applicable). If the nannies salary is agreed in gross then the above deductions will come off directly from the nannies salary.
The family may be required to pay Employer’s Pension Contribution’s and Employer’s National Insurance Contribution’s (if applicable), which does not form part of the nannies salary but rather an additional cost to the nanny employer.
Families may find it beneficial to use a professional PAYE company that will ensure that all the families responsibilities regarding payroll are dealt with correctly and with as little stress as possible.
Families may find using Nanny Tax to assist them with their nannies payroll requirements helpful. Please remember that your nanny will also be entitled to paid holidays pro rata, as to how many days the nanny works.