Nanny Tax

If you are employing a Nanny or even Nannies you need to know about Nanny Tax and its implications. Whether you employ a Daily nanny who will come to your house each day at agreed hours to look after your children, this is more than just a babysitter, or a Live-in nanny who lives in your house. You will need to provide a private bedroom and food for a live in nanny and around 20 per cent of all nannies in the UK live in. Either way there are taxes to consider and these are referred to as nanny tax.

What many people do not realise is as soon as an employer pays the minimum wage or above to a nanny they must, by law, organise the nanny’s income tax and National Insurance Contributions. This though can be organised for most people by using a nanny tax service which tend to cost about £108 per annum, However for that money at least you know that you are not breaking any tax laws and that the nanny tax will be paid.