Nannies and Self Employment
Can my nanny be self employed?
Many nanny employers wish for the nanny to sort out her own Tax and National Insurance, essentially as a self employed worker. HMRC generally does not allow nannies to work as self- employed. An explanation is set out below:
A worker is considered 'employed' if they:
• have to do the work themselves
• can be told at any time what to do, where to carry out the work or when and how to do it
• work a set amount of hours
• can be moved from task to task
• are paid by the hour, week or month
• can be paid overtime or receive bonus payments
A worker is considered 'self-employed' if they:
• can hire someone else to do their work or engage helpers at their own expense
• risk their own money
• provide the main items of equipment needed to do their job, not just the small tools that many employees provide for themselves
• agree to do a job for a fixed price regardless of how long the job may take
• can decide what work to do, how and when to do the work and where to provide the services
• regularly work for a number of people
• have to correct unsatisfactory work in their own time and at their own expense
(NB. Please note that these lists are not exhaustive.)
Nannies normally fall under the first list. In some cases HMRC do grant nannies self-employed status, but the nanny should contact HMRC directly for approval if she requires this. HRMC will assess each situation individually.
Self employed status does not automatically transfer from job to job, so even if your new nanny was previously considered self-employed she may not be now so don’t assume so. Ensure you have up-to-date, written confirmation of her self-employed status as you may be pursued to pay her tax.
Eliminate all hassle and administration by using a payroll provider such as Nannytax. Nannytax will act on your behalf with HMRC, and provide all the admin for your nanny’s payroll.
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