Live in Nannies: Being Self-employed
We are often asked this question by our UK clients and, while we are not qualified to answer any Tax and National Insurance queries, we can of course relay the advice that we have previously been given by our recommended payroll provider, Nanny Tax.
Generally, engaging a nanny to care for your children in your home is a specialist role and nannies
Whether your nanny is living in and working on a full-time time basis or on a part-time basis, these are the points to consider in order to ascertain his/her employment status.
Your nanny is employed if:
- She/he performs the work themselves
- She/he works under the auspices of a parent or house manager/butler
- She/he is paid by the hour, week or month
- She/he can be paid overtime or can receive bonuses
- She/he is working regular hours during the course of the month
Self-employment status may be considered if:
- Your nanny can delegate her/his work or duties to others and pay them her/himself at her/his own expense
- They pay others from their own funds rather than from the family’s funds
- They work on a fixed price basis only
- They work for a number of different families on a regular basis
- They have to take responsibility for those s/he delegates to including correcting any unsatisfactory duties performed
It should be noted that a nanny working for a family who is ‘employed’ will automatically assume employment rights which include holiday pay, sick pay and maternity leave.
If a nanny has a number of families who ask her/him to work irregular hours and has registered for self-employment status, they may then be suitable to work for you on a self-employed basis.
It’s always best to confirm with HMRC by completing a Form called the HMRC Employment Status Indicator. This will ensure that if the HMRC confirm your nanny’s self-employment status that you will be confident you are paying them correctly.
If you don’t check their status with HMRC, further down the line, you could be caught out as, if you are challenged by the HMRC and they declare that the nanny was employed by you, you will be liable for backdated Tax and National Insurance as the onus is always on the employer. Not only will you have to pay contributions, you could also be fined incurring further charges.
At Imperial Nannies, our clients can take comfort in the knowledge that we only select the very best candidates. Would you like to find out how Imperial Nannies can work with you to support your lifestyle?
If you wish to speak to us direct, please call
London & Overseas + 44(0)20 7795 6220
Bath & the Country + 44(0)1225 484222
Alternatively, please email: [email protected]