Employer responsibilities
Unlike registered childminders who are usually
self-employed, nannies are employed to care for a family’s
children. This means that you will become their employer and be
responsible for their tax and national insurance contributions, as
well as their holiday, sickness and maternity pay. You will also
need to have the correct types of insurance, including employer’s
liability insurance. Contact your insurance company for more
information.
Wages
Nannies, if they live out or are provided with separate
accommodation, are entitled to receive at least the national
minimum wage. When deciding how much to pay your nanny, you need to
bear in mind:
- their experience and training
- how many children they will be caring for
- the hours you want them to work
- the area in which you live
- whether they will live in your home
- if they will receive “benefits in kind” such as the use of a
car.
There are regulations covering the payments of benefits in kind,
and employers should be aware of any special tax provision they
need to make. There is advice for employers at www.hmrc.gov.uk.
The contract
Having a properly written and signed contract is vital. Part of
your responsibility as an employer is to provide your employee –
the nanny – with a contract including details of:
- start date, hours of work and dates of any settling-in
period
- overtime and time off in lieu (TOIL) arrangements, including
babysitting
- salary details, including gross annual wage and how payments
will be made
- holiday arrangements – including whether you expect the nanny
to accompany the family to provide childcare
- date of salary review and appraisal
- whether any extra household duties are expected
- arrangements for administering children medication.
You and your nanny should spend time reading the contract
together carefully before signing. Note a date on which to review
the contract – usually every six to 12 months.
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