What is a PAYE Scheme and why do I need one?

For Families > Nanny Service > Payments and Payroll

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Written by Support
Updated over a week ago

This help centre article has been written for the Koru Kids nanny service


As part of setting you up to employ your nanny, we may need to set up a PAYE scheme. This lets us report your nanny’s pay to HMRC for you, and keep you compliant with the tax aspects of being an employer.  If we do need to set one up, you will need a National Insurance number - you can apply for one here.

As a family, you will be set up on a PAYE scheme if one of the following apply:

  • If your nanny has earned at least £120 per week (including holiday pay). Note this is calculated after the Koru Kids service fee is removed

  • If you employ a nanny who is getting a pension, has another job or receives other taxable income

  • If you have an existing active PAYE scheme which you have told us about

If you do not meet any of these criteria then we are unable to set up a PAYE scheme.

We take care of the admin at no extra cost to you, and our hourly rate already covers any employer’s NI or pension contributions you’re required to make. More information on what the hourly rate covers can be found here

Tags: taxes, HMRC, compliance, National Insurance number, NI number

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