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’re not self-employed (external link) 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 (external link), 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 (external link)’) or the NHS to pay for them.
Ask your local council (external link) about organisations that can help with your employer responsibilities, such as recruiting and paying your carer.
Employees’ Rights
Anyone you employ must:
- have an employment contract (external link)
- be given payslips (external link)
- not work more than the maximum hours allowed (external link) per week
- be paid at least the National Minimum Wage (external link)
If they meet the eligibility requirements, they’re also entitled to things like:
- Statutory Maternity Pay (external link)
- Statutory Sick Pay (external link)
- paid holiday (external link)
- redundancy pay (external link)
- a workplace pension (external link)
Tax and Employing People at Home
You must:
- check if the person can work in the UK (external link)
- have employers’ liability insurance (external link)
- register as an employer (external link)
- set up and run payroll (external link), or pay someone else to do it on your behalf (even if you pay the employee in cash (external link))
- pay statutory benefits, for example maternity pay and sick pay
- deduct and pay the employee’s Income Tax and National Insurance contributions (external link)
If you employ a nanny and you are eligible for Tax-Free Childcare, you can use your childcare account (external link) 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 (external link)if the employee uses their own car for work
- providing the employee with their own car (including tax (external link) and insurance)