If you pay your nanny above the National Insurance Lower Earnings Limit (LEL) (or they have another job alongside their placement with you) you must register as an employer with HM Revenue & Customs (HMRC). For the 2023/2024 tax year, the LEL is £123/week or £533/month.
HMRC will open a PAYE (pay as you earn) scheme for the tax and national insurance payments.
As an employer, you have legal responsibilities regarding paying your nanny.
Nanny Numbers can help with all of these as well as advising on payroll matters.
if you have not already done so, Nanny Numbers will register you as an employer with HMRC, opening your PAYE scheme and obtaining the important PAYE references.
We then act on your behalf dealing with all HMRC correspondence.
Once we have your nanny’s details, you inform us of the salary or hours worked each month and we calculate what you need to pay your nanny and what is due to HMRC.
We will email you the payslips and any accounting reports that you may require for your own records and take care of all of the RTI reports.
You just have to make the payments.
We operate a monthly payment basis – a pay-as-you-go service!
We don’t charge you a yearly subscription where you are tied in.
Basic nanny payroll fee is £25 per month*.
Monthly payroll with workplace pension administration is £30 per month.*
Temporary weekly nanny payroll is available at £20 per week for placements lasting 12 weeks or less.
The monthly/weekly fee includes registration with HMRC if you are a first time employer, payslips and payroll reports, all RTI submissions to HMRC and the P60 at the end of the tax year if there is a Nanny in employment at 5th April.
* If your PAYE scheme requires closing there is a £15 admin charge (this includes the P45 for your Nanny).
Zest Payroll can provide Workplace Pension set up with NEST Pensions**.
This service has a one-off cost of £50 and is based purely on NEST Pensions providing a compliant pension scheme.
(** Zest Payroll does not endorse this pension scheme over any other and can not provide any financial advice on best-suited pension providers. You are free to choose any auto enrolment qualifying pension scheme you wish.)
The submission of the Declaration of Compliance with The Pensions Regulator (applicable to all employers) is a one-off fee of £10.00.