As the employer you must provide your nanny with a payslip every time she is paid. The payslip must show her gross wage, the tax and NI deductions made on her behalf, as well as her net wage. This is what you should take care of.
Your nanny should keep her payslips in a safe place, as they act as proof of earnings when applying for a loan or a mortgage. When you subscribe to Nannytax we send out payslips, monthly or weekly, showing all correct deductions.
Contract
You must also provide your nanny with either an employment contract or a statement of the terms and conditions of her employment within two months of her starting date.
The document should include all terms and conditions that you have agreed upon, including the start date, hours of work, starting salary (which should specify gross or net), holiday entitlement etc. It should also include your agreement to operate PAYE on your nanny’s behalf. The contract might also include a detailed description of your nanny’s duties, house rules and disciplinary procedures and any other benefits to which you may make available to your nanny, e.g. use of a car or re-imbursement of motoring costs if she uses her own vehicle for work.
Nanny contracts are legally binding employment agreements that oblige both you and your nanny to keep to the terms of employment spelled out in it. These terms can of course be changed at any time by mutual agreement.
A standard form of contract is available from Nannytax when you subscribe to our services, and it can be modified to fit the circumstances specific to your particular requirements. If you need help with making changes to the contract don’t forget to contact Nannytax Legal, our legal support team, who will be happy to help.
PAYE & Co.
It is the legal responsibility of employers, not nannies, to ensure that a PAYE scheme is set up and that your nanny’s income tax and NICs are paid when due. Non-compliance is a criminal offence and may result in a substantial fine.
Article contributed by Nannytax