Who pays the Nanny s Tax and National Insurance?
If you employ a Nanny in the UK and you pay her more than £105 per week (tax year 2008/2009) you have the same responsibilities as a commercial employer and the law requires you to: Register as an employer with HMRC Keep a payroll record and provide payslips on her behalf Pay Employee s income tax and National Insurance Contributions Pay Employer s National Insurance Contributions Provide an annual summary of all these deductions and payments These obligations also apply: If your Nanny earns less than £90 per week in your employment but more than £105 in total (e.g. if she has two part-time jobs) To any employment taking place in the UK irrespective of the country of origin of the Nanny or employer Remember that National Insurance Contributions go towards your employee s entitlement to unemployment and state pension benefits. Nannies are increasingly aware of their rights as employees and this should not be overlooked. NET OR GROSS WAGE When Nannies and Nanny Agencies agree a salary wi
