In the UK, hiring domestic workers, including Nannies and Housekeepers, means that you, as the employer, must obey certain laws like tax, pension and others.
Understanding these obligations is the first step to ensuring compliance with the legal guidelines, policies and regulations as well as being equitable with your employees.
As the employer of a Nanny or a Housekeeper inside the UK, you are accountable for deducting Income tax and National Insurance Contributions from their PAYE (Pay As You Earn) scheme.
This will apply to you if your Nanny or a Housekeeper earns above the national threshold, which can be reviewed at definite durations. You must be registered as an employer with HMRC to supply your staff with correct payslip information regarding their taxes.
Little Ones Payroll Service Administrators are available to share more information on your tax obligations as an employer, specific to your employee and situation.
With the implementation of the Pension Act of 2008, if your Nanny or a Housekeeper is over 22 years old and earns more than a certain threshold (this amount can change annually), they are entitled to a pension. Currently, the threshold is £192 per week or £833 per month.
You will be obliged by law to enrol them into a government pension scheme with you offering a minimal 3% contribution closer to their pension. This is called auto-enrolment, an initiative that assists everyone in saving for their retirement.
To make sure you are adhering to the Pension Act, contact a Little Ones Payroll Service advisor who can support you and your employee with pension questions.
A Nanny or a Housekeeper is as eligible for holiday allowances and sick pay as any other worker. The statutory minimum for an employee’s holiday, including bank holidays, is 5.6 weeks per year.
However, if you need them to work on a national holiday, it must be stipulated in their contract. The days worked on a national holiday must be given as extra annual leave to be used elsewhere in the year.
Furthermore, they can be eligible for Statutory Sick Pay (SSP) if they meet the essential conditions, such as being off from work because of sickness for 4 or more consecutive days.
It's critical to have a written employment agreement which sets out all employment conditions. This must include job responsibilities, running hours, pay, responsibilities, and other related matters.
Employment regulations are in place to protect workers such as your Nanny or Housekeeper. They encompass safety from discrimination, unfair dismissal, and a clear notice period, amongst others.
For any help regarding contracts and employment rights, Payroll Administrators are available to talk via email and phone, allowing you to discuss in depth your specific set of circumstances.
Precise record-keeping is a great way to stay on top of things and allows you to adhere to the regulations. It helps all to stay protected, both yourself and your staff, and avoid possible disagreements and legal issues.
These are accounted for through preserving statistics of pay, deductions, hours laboured, vacations taken and any other statistics you think are necessary - all of which the Little Ones Payroll Service can do for you.
Termination of employment of a Nanny or Housekeeper must be done following the UK’s employment regulations. Any termination must follow what was originally stipulated in the contract of employment. This consists of giving notice of employment/termination, paying the amount owed and ensuring that each party is happy with the final parting.
Employing a Nanny or Housekeeper in the UK comes with various obligations, including tax obligations, pension contributions, supplying secure working conditions, and being compliant with employment law.
It's crucial to familiarise yourself with these duties to ensure your employee is happy and supported. Seeking advice from a financial expert can also be useful to navigate these obligations efficiently.
Contact the Little Ones Payroll Service to discuss your situation and we will personally walk you through the process of paying your staff efficiently. You can fill out this quick form or speak to one of our Administrators on 0207 183 6795.
