If you are new to the Nanny world the following information may help you.
A Nanny is essentially your employee, and as an employer you will be subject to certain legal obligations, governed by employment and tax law in the UK. These are:
• Drawing up a Contract of employment. (We provide a standard contract for you to edit as desired).
• Registering as an employer
• Operating a PAYE scheme
• Filing an employer's tax return
We strongly suggest using a payroll service to take care of the above three points, taking the hassle out of employing your Nanny.
Zest Payroll Solutions can help with all of the above as well as advise on payroll matters.
How does Zest Payroll Solutions operate?
Zest Payroll Solutions will register you as an employer with HMRC, opening your PAYE scheme. They act on your behalf dealing with all HMRC correspondence. Once provided with the neccessary details they will calculate what you need to pay your nanny and what is due to HMRC. They will email you the payslips and any accounting reports that you may require for your own records. You just have to make the payments.
How much does it cost?
They operate a monthly payment basis – a pay-as-you-go service, perfect for Temporary employment.
They don't charge you a yearly subscription where you are tied in. Their current nanny payroll fee is only £15 per month.
The monthly fee includes your end of year return filed online if the same nanny is still in your employment at 5th April.
(NB) On some occasions, Temporary Nannies and Maternity Nurses can be registered as Self Employed. This would need to be checked in each instance with HMRC.