Accounting & Payroll

Employing a Nanny

If you employ a nanny in the United Kingdom you have the same legal responsibilities as a commercial employer irrespective of the country of origin of the nanny or employer or the duration of employment.

We are able to offer services in payroll, HR and employment law to ensure your nanny employment needs are covered.


One key advantage to our payroll package is if you decide to change your nanny during the year, the package can easily be transferred to your new employee with no additional costs.


Our annual subscription is just £250.00 This package includes comprehensive payroll services specifically tailored for nannies.


Daily Nannies

Your Responsibilities

  • Register as an employer with HMRC
  • 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 payslips 
  • Provide them with an employment contract 
  • Pay regular income tax and national insurance contributions 
  • Pay employer's national insurance contributions 
  • Contribute towards your nanny's pension 
  • File an employer's annual tax return 
  • Have employer’s liability insurance in place


Night Nanny Services

Government Rates & Thresholds 2024/2025

  • Individual personal allowances are frozen at £12,570 until 2027/2028
  • For employees the National Insurance is reducing from 10% to 8% from 6 April 2024
  • From 6 April 2024 the Class 2 National Insurance for self-employment has been abolished and Class 4 National Insurance has been reduced to 6%
  • If nanny is using their own car then the family can remunerate up to 45p per mile, above that amount is considered a benefit in kind.
  • A full-time employee is entitled to a minimum of 5.6 weeks (28 days)of paid annual leave. This includes the 8 UK bank holidays. Employers can choose to offer more than the legal minimum if they wish.
  • Part-time nannies are also entitled to 5.6 weeks paid holiday in proportion to their work hours (also known as ‘pro-rata’).
  • The same rules apply for temporary nannies.



Babysitting Registration

Benefits of a Gross Salary

  • Enables the employer to budget more effectively as it incorporates the additional costs of tax, NI and pension from the offset which then gives the nanny more job security.
  • Protects the employer from becoming liable for any of the nanny’s unpaid tax from previous jobs or other deductions which may include court-orders, child maintenance payments and student loans.
  • Ensures the nanny is paying their side of the pension contributions.
  • Prevents confusion when liaising with HMRC who will only talk in Gross terms.
  • Makes it simpler for the nanny when taking out a mortgage or loan as the lender will want to see proof of income in Gross terms.
Overnight Nannies

Self Employed Vs Employed

Nannies are generally employed by the family as they will dictate the nanny’s day, hours and duties.


In some instances, HMRC may grant a nanny self-employment status if they work for multiple families on a temporary basis, or with three or more families at one time. Every case can differ slightly, therefore we always advise the nanny to contact HMRC directly regarding any self-employment queries.


A self-employed nanny will not be entitled to any employment rights such as holiday pay, sick pay, maternity pay or protection when it comes to their position being terminated


A nanny is generally considered ’employed’ if they:

  • Work a set number of hours
  • Must undertake the work themselves
  • Can be told at any time what to do, where to carry out the work or when and how to do it
  • Can be moved from task to task
  • Are paid by the hour, week, or month
  • Can be paid overtime or receive bonus payments


A nanny is generally considered self-employed if they:

  • Can choose their own hours
  • Can send someone in their place to undertake the work or engage helpers at their own expense
  • Can decide what work to do, how and when to do the work and where to provide the services
  • Regularly work for a number of families
  • Agree to do a job for a fixed price regardless of how long the job may take
  • Must correct unsatisfactory work in their own time and at their own expense


What are the risks for families?


If a nanny does choose to provide work on a self-employed basis then the family must get this status verified by HMRC.

Families who are looking to take on a self-employed nanny are responsible for requesting written confirmation of the self-employed status from HMRC.

If you take on a self-employed nanny without carrying out the correct checks to confirm your nanny’s self-employment status, and it later comes to light that they have not been granted this status, you as the employer could face serious repercussions such as liability for all unpaid tax.


If a nanny has previously been self employed, the transfer of their self-employed status between jobs does not happen automatically. We would recommend that nannies check with HMRC and confirm whether they can continue being self-employed in their new role.

Contact us

Employment Law

Client testimonials

"I spoke to several other agencies before finding The Surrey Nanny Agency, none of them gave me the confidence that Lorraine did. She is very engaging and her passion shines through. She understood exactly what I was looking for and managed to put forward great matched candidates straight away. "

Anna S

Behind every good business is a great accountant!

Based in Guildford, we work with parents throughout Surrey, Hampshire, Berkshire and London. Contact The Surrey Nanny Agency on

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