We actively recommend parents and employers to discuss all aspects of the vacancy including; finances, job duties, holiday entitlement and special circumstances with the family prior to commencement of employment. Having all business matters agreed upon helps ensure a successful working relationship. Whether you employ a Live In Nanny or Live Out Nanny, a Governess or Nanny/Housekeeper and Nanny/PA these rules apply to you.
Yes it is the law. All employers are required to instigate PAYE arangements for their employees. As an employer you are duty bound to deduct the Tax and National Insurance that is owed to the state by your employee. In the UK you are required to pay it to Her Majesty’s Revenue and Customs (HMRC) on the behalf of your employee. As a Nanny employer, you are no different to any company. and must collect the Tax and NI from the nanny each time she is paid and pay it over to HMRC.
Almost all nannies aged between 22 years old and the State Pension Age who earn above the UK Tax Free Allowance (currently £11,000) will need to be enrolled automatically. A nanny who may not qualify for automatic enrolment into a pension scheme does still have the right to ask to join a workplace pension, which as the employer you will be required to provide in the UK.