Employing a Nanny
Employers of Nannies have the same legal obligation as any other employers (please note, nannies and mother’s help do not classify as self-employed). The families need to make all contributions towards NI and taxes, including a contribution towards their Nanny’s pension.
We also advise Nannies to have their own public liability insurance. This is also a requirement for any Nanny or Mother’s Help to register with Ofsted.
Maternity Nurses generally work on a self-employment basis and will take care of their own taxes, NI etc.
So what are your legal obligations?
Tax contribution and pension scheme:
It is very important you ensure your Nanny’s income tax contributions are paid correctly. You can contact HM Revenue and Customs to register as a new employer and set up a PAYE scheme. There are very reputable companies that specialise in sorting out all the tax payments and legalities for those in the Nanny industry. We do recommend that you look at these service providers as they will calculate taxes, manage NI and pension schemes, issue your Nanny’s payslip and so forth. Our team will be happy to recommend companies to you that have expertise in the area of childcare payroll and employment.
Employers liability insurance:
You will need employer’s liability insurance with a minimum indemnity of £5 million. This gives you cover in case your Nanny becomes ill or if they have an accident while working for you.
As an employer you need to issue a contract for your Nanny within the first two months of her employment, although, from the moment they accept your employment offer you become contractually bound to each other. The importance of the contract is not to be underestimated, as it will keep both parties protected and set clear boundaries that will help everything to run smoothly. The key components to state in the contract are: working schedule, holiday allowance, duties, probation period, notice period, length of employment, termination of employment. The contract should also cover how to proceed in case of any grievances arising.
Ensuring your Nanny can work in the UK:
It is your responsibility to make sure that your Nanny can work in the UK. You will need to check their passport and all other documents (for example – residence permit or visa) that are relevant to living and working legally in the UK. At Dream Nannies we will ensure all candidates we put forward to you have a right to work in the UK at the time of the interview.