This help centre article has been written for the Koru Kids nanny service
Legally, a nanny who’s working for you on a regular basis needs to be employed. We know that this can feel like a headache busy parents don’t need - which is why we manage your employer obligations as part of the hourly rate you pay for your nanny. This includes:
Checking right to work - if the person can work in the UK
Writing your employment contract
Assessing whether you meet the threshold to register with HMRC as an employer and registering you if needed
Assessing whether you need to provide and pay into an employee pension then setting this up and paying it if required
Running payroll, providing your nanny with a payslip and paying your nanny on your behalf
Paying statutory maternity pay (where eligible)
Administering statutory sick pay
Managing your employee’s Income Tax and National Insurance contributions
We don’t provide is employers’ liability insurance. However, this is usually included in your home insurance so it's worth checking your current policy.
Handling these yourself can be very time consuming. External payroll agencies typically charge £500 a year upfront but they don’t manage payments for you. You’ll still need to track your nannies hours, send these to the payroll agency, pay taxes via HMRC and pay your nanny yourself.
It's illegal not to do this - HMRC considers it tax evasion, and you as the employer are liable, with the risk of large fines, back payments and prosecution. Tax evasion can also be discovered when the employee takes on a future job ‘on the books’, which makes HMRC aware that things were not done properly in the past.
Find out more about what’s included in our service here.