For Employers
For Employers
Click on the white down arrow in the Employers Tab for the full list of payroll forms to set up your payroll. The 3 short steps to payroll set up are:
Complete a subscription form
Subscription FormComplete a payroll form
Payroll FormIf required complete a contract questionnaire
Contract QuestionnaireThese 3 forms are available together under Getting the payroll started.
Employing a nanny in the UK means that you are required by law to register with HMRC as an employer and operate a PAYE (Pay as you Earn) scheme. This obligation applies to employing anyone for a week or longer irrespective of country of origin.
Nannies do not meet HMRC criteria for self-employment. Therefore, the employer has the responsibility to declare their employees tax position to HMRC not their employees. Any tax payments not made the employer not the nanny will be liable to HMRC. Failure to register as an employer with HMRC, make late payments, submit paperwork behind schedule or file late employers annual returns can result in heavy penalties.
Please be aware that nannies and agencies often agree a net wage with employers but truly a nanny is paid a gross wage with NIC and tax withheld and paid to HMRC by the employer on the nannies behalf. Over and above this employers must pay Employers National Insurance contributions for each employee so check the true cost before agreeing a net wage figure.
Employers are also required by law to provide payslips for their employees showing tax and National Insurance deductions made to arrive at the net wage. Under the new self assessment laws an employee is required to keep payslips, P45’s (Part 1a) and P60’s (end of year summary) provided by their employer as proof of earnings.
General Information
Thank you for your interest in Nannywage Ltd. The payroll service for people who employ a nanny or other domestic staff.
With over thirty years payroll experience, Nannywage Ltd. has been expressly formulated to provide a nationwide, inexpensive and professional service. To deal with all the complexities of the employment tax system, thus ensuring complete peace of mind for busy people.
A good employer
It is vital that tax and national insurance contributions are paid correctly and punctually, as these payments go towards your employee’s entitlement to unemployment and state pension benefits. Employees are more than ever aware of their rights of employment. An accurate record of PAYE, tax and NIC also helps an employee when applying for a loan or mortgage. With the Nannywage Ltd. service you will be seen as a good employer, thus retaining the best staff in your employ
When employing a nanny or other domestic staff You are required by law to register with HMRC.
- The onus is on you as an employer to declare your staff employment to HMRC, if you fail to do so you will be pursued for payment.
- You are required by law to provide payslips for your staff and end of year summary, plus P45’s (part 1a)
- You are required to comply with all Inland Revenue paper work. Failure to do so will result in fines and penalties.
- You are required by law to deduct the correct amount of PAYE tax.
- You must calculate your employees and your National Insurance contributions
- You are required to keep an accurate record of your employee’s pay, tax and National Insurance contributions.
- You are required to pay monthly or quarterly the total tax and National Insurance contributions to HMRC.
