Payroll and Employment Support.

Nannies Provided through Teddies Agency are employed directly by the family or work as self-employed professionals.

As the employer, parents are responsible for adhering to employment laws, including taxes, National insurance contributions, and contracts of employment

Payment Terms

Hourly/Weekly Rates: Nanny rates are competitive and vary based on experience, qualifications, and duties.

Payments should be made on a weekly or monthly basis, as agreed upon in the employment contract

Additional Costs

Overtime: Any hours worked beyond the agreed schedule will be charged at an overtime rate.

Expenses: Families are expected to cover costs for any agreed-upon activities, travel with children or meals during working hours (if required)

Holidays and sick Leave

Nannies are entitled to holiday pay as per statutory requirements (28 days annual leave, pro-rated if working part time).

Families should also outline sick leave policies in the employment aggreement (contract).

Tax and insurance

In the UK if you are employing a nanny it's legally your responsibility to make sure the nanny is on PAYE (Pay As You Earn) Scheme and their tax and national insurance is paid.

The Nanny should receive a payslip each time they are paid. An end of year tax P60 every year.

Cash in hand may seem an easy option but it's not. HMRC Revenue and Customs take not paying tax and national insurance very seriously. You could receive a fine or a penalty for not declaring.

Nannies, it's important that you check that your employer is paying your tax and national insurance by checking your pay slip.

By your tax and insurance not being paid you can lose benefits that you are entitled to such as:

Holiday entitlement
Sick pay
Maternity Pay
Redundancy
National Insurance contribution for your state pension
Finance lenders (mortgage and loans) Finance companies will ask for proof of earnings when applying for finance.

Tax Free Childcare

Childcare can be really expensive. The government have set up a scheme "Tax Free Childcare".

You can claim up to £500 every 3 months for each of your children, to help towards childcare which includes help with:

childminders, nurseries and nannies
after school clubs and play schemes

Your childcare provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare.

When you have set up a Tax Free Childcare account online, for every £8.00 you pay in the government will pay in £2.00 to use to pay for your childcare provider.

To be eligible for the tax free childcare it depends on:

whether you’re working (employed, self-employed, or a director)
your household income
your child’s age
your immigration status

Pension Act 2018

Nannies, If you are aged between 22 and state pension age and earn more then £10,000 per annum a pension is required. This is compulsory in the UK.

If you are below the age of 22 and earn less then £10,000 per anum you have the option to opt in if you want to start a pension.

The pension works by a percentage which is taken from your monthly salary and both your employer and the government pay a percentage.

If your employer does not offer a pension scheme they could be looking at a fine from The Pension Regulators.

Employment Contract

Employment contract is a legal agreement between two parties, the family and the nanny who is being employed. The contract should be set out with

Responsibilities
Duties

The contract will provide

An employment relationship
Provide assurance of responsibilities and duties in their role.

Teddies Agency offer a sample contract to clients. A word document that can be edited and adapted to yourself.

We do advise you seek legal advice on further information about the contract.

Teddies Agency