To set up your payroll service and claim this exclusive offer, complete the registration [HERE] or call 020 8038 0212.

Lily’s Payroll: Professional Nursery Staff Payroll Services

From Statutory Sick Pay and student loan deductions to Statutory Maternity Pay and payslip management, let the experts at Lily’s Payroll handle your nursery’s complexities with their professional, comprehensive service.

An extension of your nursery business

Little Ones recommends Lily's Payroll because their service acts as a seamless extension of your business. With over fifteen years of experience managing nursery staff payroll, their team ensures your operations are professionally handled and fully compliant.

We are confident that Lily's provides a tailored payroll service that meets every requirement of your nursery. Furthermore, any complex HR queries you may have are handled by their experienced employment law solicitor, Marilyn Heward-Mills. This guarantees peace of mind that both your staff and your nursery’s legal responsibilities are fully taken care of.

A premium service at an affordable rate

The Lily’s Nursery Payroll Service is delivered at an affordable and flexible rate and includes complete management of your payroll cycle:

• Setup and maintenance: Full management of all employee details, tax, and NI calculations and deductions.
• Documentation: Production of compliant payslips and summaries per pay period.
• HMRC reporting: Issue of an HMRC payment summary (P32) monthly or quarterly, and submission of all End of Year declarations.
• Statutory payments: Accurate calculation of statutory payments, including Statutory Sick Pay, Statutory Maternity Pay, and Statutory Adoption Pay.
• Leavers: Seamless issue of P45s for any staff that leave employment.
• HMRC liaison: Full payment submissions and liaison with HMRC on behalf of your nursery.

Nanny Employment Contract Support

A contract with your nanny is just as crucial for household employment as it is in any other job. A legally sound employment contract ensures both you and your staff are fully covered for the period of employment. Hiring a nanny without a contract is a major risk, it's just not safe.

Complimentary Contract Samples

Little Ones provides all our clients with access to 7 sample employment contracts tailored to various Nanny, Housekeeper, Au Pair, and other domestic roles.

Our team has made editing these sample contracts simple and easy by highlighting the areas you need to complete with your specific employment details. If you're ever stuck, Lily's Payroll, our friendly payroll partner will be happy to help you out with any basic queries.

Why do you need a nanny employment contract?

For those new to hiring, the idea of creating a legal document can be daunting. Contracts are crucial because they clearly define the terms for all parties, covering vital items like:

Little Ones Partnership: Lily’s Premium Payroll Service

Little Ones' trusted partner, Lily's Payroll, is here to take the hassle out of your hands. We recommend Lily's because their Premium Payroll Service ensures that you are fully compliant with HMRC and able to provide accredited payslips and documentation, including assistance with Auto-Enrolment.

Lily's Payroll experts save you the hassle of speaking with HMRC as well as the complexity of processing and providing payslips to your employee.

Legal Advice Service Registration

Finding your housekeeper is just the first step. Payroll isn’t just about getting paid, it's about staying legally compliant, protecting your family, and securing your reputation. As a market leader, Little Ones is committed to minimising your administrative risk, which is why we exclusively partner with Lily’s Payroll, the recognised industry leader in domestic staff compliance.

Exclusive Housekeeper Payroll Services

Lily’s Payroll: Trusted compliance for Little Ones Clients

With over 15 years of experience supporting families with compliant housekeeper payroll, Lily’s Payroll is the recognised expert in the industry. Their dedicated payroll department is specialised in HMRC regulations and fully understands your obligations as a housekeeper employer.

Securing your hire: Payroll made simple

Now that you’ve hired your housekeeper, it’s time to secure their long-term compliance. Little Ones’ trusted partner, Lily’s Payroll, are experts within the household payroll industry. Their team understands the multitude of complications that can arise with HMRC and is here to ease your stress and ensure accuracy.

How to calculate tax and NI for your nanny

Before calculating tax for your nanny or housekeeper, it's vital to understand the Why: Why is it mandatory to declare and pay Tax and National Insurance (NI) on your nanny’s behalf to the Government?

It's in national emergencies, like the COVID-19 lockdown, that the difference between compliance and non-compliance becomes clear. Families who had their payroll up-to-date could smoothly access schemes like furlough, ensuring their nannies were still paid. It is mandatory for all families to declare their nannies' taxes and NI.

The legal requirement (PAYE)

Every employee in the UK, regardless of whether they are temporary, permanent, full-time, or part-time, must have PAYE (Pay As You Earn) and NI deducted from their Gross salary before receiving their Net salary.

PAYE is HM Revenue and Customs' (HMRC) system to collect Income Tax and National Insurance from employment. As the employer, you are legally obligated to declare and send these deductions to HMRC.

What you need to deduct

As an employer, you must deduct Income Tax and National Insurance. You may also deduct student loan repayments or pension contributions.

Income Tax Rates and Thresholds (2024-2025)

You will need to make calculations based on your nanny's tax code and annual earnings.

Employers' Liability Insurance

UK law requires employers to have Employers’ Liability Insurance [Employers' Liability (Compulsory Insurance) Act 1969]. This is to ensure compensation is available for an employee who is injured or becomes unwell at work.

It is your legal obligation as an employer to ensure you have Employers’ Liability Insurance in place by your employee’s start date.

Employers can face fines of up to £2,500 for each day they are not insured.

It is important to have this in place to cover you for any potential accidents or injuries your Nanny incurs as a result of the work they do for you.

Tailored Employers’ Liability Insurance policy through our Insurance Broker Partner for Little Ones clients:

• Provides cover for all sums up to £10 million
• Protects you if your employee is injured or becomes unwell while working for you
• Safeguards you against potential legal claims regarding work-related accidents or illnesses
• Extends your insurance worldwide for up to 90 days when your employee travels with you
• Pays fixed benefits if your employee is seriously injured while carrying out their duties (up to £25,000)
• Offers unlimited advice through the 24/7 helpline (expert support on employment law & safety through ILG Support)

Claim examples can include:

Your employee is injured as a result of manual handling injuries (i.e., back pain).

Your employee slipped, tripped, or fell (i.e., tripped over clutter on the floor or slipped on a wet surface).

Your employee breaks a bone while lifting equipment — they could receive up to £500.

Public Liability Insurance

We strongly recommend that all candidates working with Little Ones clients have adequate Public Liability Insurance in place. Although it is not considered a legal requirement (unless you are Ofsted registered), it is widely regarded as good practice and responsible to have this in place when working in childcare.

Public Liability Insurance will provide financial protection in the event of an incident occurring while you are performing your professional duties. This will cover legal costs and any possible compensation if you are found to be at fault.

Without proper insurance, you could be liable for the cost of medical bills, legal fees, and compensation to the family affected. Claim examples include:

You damage some property (clothes, ornaments, furniture) at your employer’s home. You accidentally injure a child with a hot drink. (Hot drinks are the most common source of burns in young children.)

What does Public Liability Insurance include?

• Public Liability (up to £5 million): As a consequence of bodily injury or property damage to a third party while you are working
• Legal expenses (up to £100,000): Cover for your legal expenses if you are injured or suffer a loss whilst at work
• Personal & Family Possessions (Up to £2,500 each): Repair or replacement of possessions if something is damaged while you are working
• Personal Accident (Up to £10,000): A little less to worry about because we have put protection in place in the event you suffer an accident
• Employment Support: Proactive employment support available 24 hours per day, 7 days per week
• Hassle-free Claims: The UK-based claims team is on hand to deal with your claim and answer any questions you may have

Why should you get Public Liability Insurance?

Legal costs: Insurance can cover legal costs and compensation if you are to be found at fault.

Peace of mind: Insurance can protect both you and the family you work for.

Ofsted requirement: To be a Nanny registered with Ofsted, you must have a valid Public Liability Insurance policy.