Childcare
Contracts and Taxes
All domestic employees have the right to a written contract that
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details hours, pay, holidays, babysitting rate, family holiday/over- The Nanny Payroll Service
night rate (if nanny is staying with you) and other obligations. The Assistance in setting up
annual holiday entitlement is four weeks, including bank holidays. Nannies as paid employees.
There is a qualification period of 13 weeks continuous work. Provides monthly or weekly
If you are not going through an agency and need help drafting payroll services. Available
a contract please contact FOCUS for more information and a nationwide. Tel. 01536 373 111
sample contract. www.nannypayroll.co.uk
If you employ a nanny (or any other domestic help) in the Nannytax Provide payroll
UK and pay more than £97 per week (tax year 2007/2008) service for employers of
you have the same legal responsibilities as a commercial nannies. They will complete
employer. payroll and deductions
There are several companies that specialise in Nanny Tax. records on your behalf.
They will provide everything for you and your employee. The Tel. 0845 226 2203
following listings should provide some initial help in setting up www.nannytax.co.uk
payment for your nannies and understanding the taxes required.
Tax and National Insurance Contributions
If you employ a nanny (or any regular payslips, ● To any employment taking
other domestic help) in the UK ● Provide her with an place in the UK –
and pay more than £97 per employment contract, irrespective of the country
week (tax year 2007/2008) you ● Pay regular income tax and of origin of the nanny or
have the same legal National Insurance employer
responsibilities as a Contributions, It is possible to file all the
commercial employer. This is ● Pay employee’s National necessary documentation
regardless of the employee’s Insurance Contributions, yourself or you can hire an
nationality and is your ● File an employer’s annual agency for £175-250 per year. If
responsibility not the nanny’s. tax return you would like to process the
The law requires you to: These obligations also apply: Tax and NI yourself, then
● Register as an employer, ● If your nanny earns less contact your local tax office
● Set up and operate a PAYE than £87 per week in your and register as an employer.
(Pay As You Earn) scheme employment but more than They will send you the relevant
on your nanny’s behalf, £100 in total (e.g. if she has forms and you will then be
● Keep tax records on her two part-time jobs) required to pay tax on a
behalf, ● In short-term employment quarterly basis.
● Provide your nanny with (i.e. a week or longer)
32 Focus Children’s Guide
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