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Contracts and Taxes
All domestic employees have the right to a written contract that details hours, pay, holidays, babysitting rate, family holiday/overnight rate (if nanny is staying with you) and other obligations. The annual holiday entitlement is 5.6 weeks (28 days), including 8 UK bank holidays. There is a qualification period of 13 weeks continuous work.
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 (NI).
The nanny’s employer also has to contribute to his/her employee’s total National Insurance payment. This is a bit less than the amount the nanny has to pay in for.A nanny employer must pay the State’s National Insurance Contributions in case the nanny should go on sick leave (Statutory Maternity Pay) or fall pregnant (Statutory Maternity Pay). Her employer can reclaim the pay with HRMC while deducting the amount from the nanny’s weekly gross pay.It is important to understand the difference between ‘gross’ and ‘net’ pay. ‘Gross’ is before tax and NI’s deduction and ‘net’ is after the deduction. In the nanny world there is a tendency to talk ‘net’ salaries. But this can be rather deceptive as most other jobs talk in terms of ‘gross’ pay. Just make sure that you know exactly what your take home is and be aware of everything that is deducted and why.
Furthermore, in 2012 the government introduced the Pensions Act. This is a piece of legislation that makes it a requirement for all employers including those who employ domestic staff – to automatically enroll qualifying employees into a workplace pension scheme.

"Green your Clean" from FOCUS Magazine Mar-Apr 2019

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