Employers' Legal Obligations

As an employer of a nanny, you are faced with legal duties. Employers must also be aware of the ever-changing employment laws. We know that these legal responsibilities can easily be overwhelming.

However, to make life easier for employers, we can recommend experts who can act on your behalf and offer you an exhaustive hassle-free service regarding employers' obligations.

 

Tax, National Insurance Contributions & Payroll

As we have previously seen, employers of nannies must meet a range of legal obligations. If you fail to meet your legal duties, you will incur heavy penalties. As an employer, you must register with HM Revenue & Customs. In the nanny industry, nannies' wages are quoted as net. Thus, by law, employers must pay tax & NIC (National Insurance Contributions) on top of the nanny's net salary.

For your peace of mind with meeting your legal obligations and in order to take this burden off your shoulders, we can put you in touch with chartered accountants & tax advisors such as "Taxing Nannies" who can offer you a comprehensive service in this matter. They can indeed carry out the following on your behalf:

• put a contract of employment in place between your nanny and you, specifying all your requirements,
• deal with HM Revenue & Customs,
• offer advice regarding nanny tax and nanny payroll
• open a PAYE scheme for your nanny as a nanny cannot be self-employed
• calculate tax & national insurance
• provide regular payslips to your nanny
• file employer's end of year tax return and forms
• etc.

 

Nanny payroll providers

Educated Nannies recommend the services of:

• Taxing Nannies: www.taxingnannies.co.uk. Specialist nanny payroll service by chartered accountant(s) & chartered tax advisor(s).

 

Educated Nannies also recommend the services of:

• Nanny Tax: www.nannytax.co.uk. Leading payroll support service for parents employing nannies.  

 

Salary & Wages

• By law, a nanny cannot be self-employed.

• It is a legal obligation for employers to provide their nannies with regular payslips.

• Your nannies are childcare professionals. The employer-nanny relationship is based on mutual respect. Your nannies expect to be paid on time as they also have their own personal commitments.

 

Contract of Employment  

• Under the current legislation, employers must provide their nannies with a contract of employment within eight weeks of starting employment. A contract of employment is a legal obligation for employers of nannies. We can only reiterate the necessity for employers to provide/consider a contract, even before your nanny comes to work for you, underlining the nanny's duties and child discipline issues. Please, call one of our Consultants if you need help with providing a contract to your nanny.

• We strongly advise you to consider a confidentiality clause within the contract of employment due to the privacy matters related to your household.

 

Employers' Public Liability Insurance

It is a legal obligation for employers of nannies to take out Employers' Public Liability Insurance. This protects employers in an event of any accident your nanny may be related to while working for you, as your nanny would be entitled to compensation. Please, check with your insurance company. 

 

Motor Insurance

If nannies get access to a car that their employers require them to drive, employers must include nannies on their motor insurance policies. Please, check with your insurance companies.

 

Nannies - Eligibility to work in the UK

Employers must ensure that nannies are eligible to work in the UK. It is a legal obligation, failure to do so will expose you to heavy fines. Employers must ask to see the original of passports/visas and other eligibility documents for their nannies/staff to work in the UK. Employers should keep a copy of these documents on file for their own records. For additional information, please visit:

• www.ukba.homeoffice.gov.uk/workingintheuk
• http://www.ukvisas.gov.uk/

 

Further information - seeking legal & tax advice

Please, note that we are not legal experts; thus, the information provided on this website is for guidance only.

Should you require any further in-depth information, we strongly advise you to seek advice by contacting professional legal & tax advisors. Additionally, you can contact HM Revenue & Customs regarding your legal obligations as an employer of a nanny.