There is a lot to be considered when hiring a nanny.
Registering your nanny with HMRC
Once you have decided to hire a nanny and all employment terms have been agreed, you will need to register your nanny with HMRC. You are legally required to do so within 8 weeks of your nanny’s start date. The registration may be arranged by your accountant or through a specialist Nanny Payroll Service company. We recommend Nannytax, the UK's original nanny payroll specialists (www.nannytax.co.uk)
All employees are entitled to having an employment contract within 8 weeks of starting a new nanny role. A written employment contract is a legally binding employment agreement between employer and employee. The contract will avoid any potential disputes as to terms of employment. Employers should ensure that the employment contract meets the current Employment Law requirements. Nanny Payroll Service companies may provide you with an employment contract for your needs.
Salary and payroll
As a nanny employer you are responsible for providing your nanny with her weekly/monthly salary and the relevant payslips. We strongly advise that when putting an employment contract in place you agree a gross salary with your nanny.
You can find plenty of useful information on net/gross conversions, payroll services and employment contracts on our recommended Nanny Payroll Exprert's - Nannytax - website.
As an employer, you are legally required to be covered by employers’ liability insurance for injury or disease. You will undoubtedly ensure that your home is a safe workplace for your nanny but in the unfortunate event of an accident occurring to your nanny in your own home, you nanny would have the right to raise a claim for reimbursement of costs. Employer's liability insurance will cover you against such claims.
Some household insurance policies often cover this type of public liability insurance so do check with your insurer. If the nanny is to have use of a car it should be appropriately insured.