You are usually considered the employer of a nanny, housekeeper, gardener or anyone else who works in your home if both:
- you hire them;
- they are not self-employed or paid through an agency.
This means you have certain responsibilities, like meeting the employee’s rights and deducting the right tax.
There are special rules for au pairs, who are not usually considered workers or employees.
Carers and personal assistants
You are classed as an employer if you pay a carer or personal assistant directly, even if you get money from your local council (direct payments) or the NHS to pay for them.
Ask your local council about organisations that can help with your employer responsibilities, such as recruiting and paying your carer.
Anyone you employ must:
- have an employment contract;
- be given payslips;
- not work more than the maximum hours allowed per week;
- be paid at least the National Minimum Wage.
If they meet the eligibility requirements, they are also entitled to things like:
Tax and employing people at home
- check if the person can work in the UK;
- have employers’ liability insurance;
- register as an employer;
- set up and run payroll, or pay someone else to do it on your behalf (even if you pay the employee in cash);
- pay statutory benefits, for example maternity pay and sick pay;
- deduct and pay the employee’s Income Tax and National Insurance contributions.
If you employ a nanny and you are eligible for Tax-Free Childcare, you can use your childcare account to pay their Income Tax and National Insurance contributions.
You cannot ask your employee to become self-employed.
Your employee’s car
There are also rules around:
- paying for mileage if the employee uses their own car for work;
- providing the employee with their own car (including tax).