Nanny Numbers – Pay As You Go Nanny Payroll Service
Zest Payroll Solutions operates a friendly, reliable payroll service to help parents employing a nanny on a pay-as-you-go basis.
Unlike other nanny payroll services, we don’t charge you an upfront annual fee, you just pay on a monthly basis for as long as you need us.
Nanny Employer Responsibilities
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.
- Providing your nanny with regular payslips.
- Deduction and paying income tax and National Insurance contributions over to HMRC.
- Paying statutory payments such as Statutory Sick Pay (SSP) and holiday pay.
- Keeping tax records.
- Paying employer’s National Insurance contributions.
- Submitting your payroll data to HMRC under Real Time Information.
- Providing a Workplace pension scheme.
Zest Payroll Solutions can help with all of these as well as advising on payroll matters.
For a full guide to becoming a new Nanny Employer please see our GUIDE.
How does Zest Payroll Solutions operate?
If you have not already done so, Zest Payroll Solutions 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.
Zest Payroll Solutions strongly recommend agreeing on a Gross salary with your Nanny.
Find out why HERE.
How much does it cost?
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.