A Complete Guide to Nanny Payroll Services


Published on March 30, 2017

You’ve been through the process of finding your perfect nanny- now you have to pay them!  However, many people have queries about nanny payroll services.

Nanny payroll services can seem like a complicated thing to manage.  Especially if this is the first time you are hiring a nanny. But this doesn’t have to be the case. Here at Polo & Tweed, we’ve written a handy guide for you to understand nanny payroll services better.

When Do I Officially Become an Employer?

The UK government guidelines state that once you pay a nanny over £112 per week, then they should be officially put on the payroll.  There are multiple nanny payroll services that exist.  They will give you peace of mind as to how to pay the nanny legally.

Which Nanny Payroll Services Are the Best?

We really like Nannytax as a nanny payroll service.  They give good, independent advice and are budget-friendly too. If you have your own accountant, do enquire with them.  They may well have a simple and affordable nanny payroll service they can help you with.

What is the Difference Between Net and Gross Payment?

For a wage earner, gross income is the amount of salary or wages paid to the individual by an employer before any deductions such as tax are taken. Net income is the residual amount of earnings after all deductions have been taken from gross pay, such as payroll taxes and retirement plan contributions.

Why and When Do I Have to Pay NI and Tax?

As a domestic employer, you can pay NI and tax weekly, fortnightly, monthly or three-quarterly.  In the UK it is your legal responsibility as an employer to pay the NI and tax on behalf of your employee. In turn they are given the rights of an employee within the government laws and guidelines.

Do I Have to Register as an Employer?

As we’ve mentioned above, if you’re paying your nanny more than £112 per week then you should register as an employer in the UK.  Not registering or declaring tax or employment is a criminal offence.  It’s not worth risking getting in trouble with the law.

Is it Possible for a Nanny to be Self Employed?

In the UK it’s not legal for a full-time nanny to be self-employed.  However, in some part-time or temporary cases, such as a maternity nurse or temporary help, the candidate can be self-employed. Always take advice and follow the country’s government guidelines.

How Do I Calculate the Salary Payments?

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You can use the Nannytax salary calculator to work out the net and gross payments, depending on the figures entered.  Another excellent calculator is the salary calculator.  When your accountant or nanny payroll service provider calculate the payroll for you, your employee and yourself will be sent a payroll slip, allowing you to see the cash payments you should make.  You can arrange to pay the salary weekly, fortnightly or monthly, depending on your contract and agreement with your nanny.

How Do I Pay the Nanny I’ve Hired?

You can pay them however you wish!  From bank transfer through to cheque, standing order or cash, the payment system you choose to use is down to your personal preference and the contract or agreement you have with your nanny.

I’m Still Confused! Help!

We understand that nanny payroll systems can be complex.  They can also vary from country to country.  So, always take specialist advice.  If you still need guidance or just need some general advice on nanny payroll service, please do get in touch with us at Polo & Tweed.

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