Nanny Payroll
Nanny Payroll Services
Nanny Payroll Services To Let You Focus On Your Family
Let’s go over the key requirements for employing a nanny or childminder, supporting you in meeting your statutory obligations as an employer and ensuring compliance with HMRC and The Pensions Regulator.
Our clients tell us that our approach ensures peace of mind, saving time and energy, and enabling your growing family to receive flexible, tailored and age-appropriate care by a dedicated professional.
Let’s get started!
Simplify Payroll for Your Nanny with PayrollAbility
Our experience of working with parents teaches us that you time is precious, but you want the best experience for your children when hiring a nanny. Finding the right fit for your family and household may have been a lengthy and possibly stressful process. At this point, PayrollAbility will take the next steps for you, making the process of becoming the employer of a nanny simple and stress-free.
Our tailored nanny payroll service includes HMRC employer registration, set-up of a Nest pension scheme if required and enrolment of your nanny into the scheme, calculation and deduction of tax, NI and employee pension contribution, monthly payslips sent by secure email each month, and advise on how and when to pay HMRC and Nest.
Why Choose PayrollAbility for Nanny Payroll?
This is how we help you focus on life’s essentials and your family.
Simple Payroll Management
We schedule your payroll for processing on our agreed date, giving you plenty of time to review payroll and advise of any changes required for the pay period. Our proactive approach means payroll will be ready and waiting when you expect it.
Payslips will be sent to your nanny automatically, the day before your pay date and reports for your household expenses will be available to you each month.
Advise on how to make payments to HMRC, and direct debit payments to Nest will always be advised well in advance to avoid the need to make last minute payments.
Tailored Solutions for Families
Household payroll is not small business payroll. Experience shows that you have questions unique to parents and families, and the answer to some of those can be found below in our FAQ section here
The Benefits of Using PayrollAbility
Simply put, we bridge the gap between employing a nanny and meeting your employer obligations, including HMRC and The Pensions Regulator. Here’s how we do it:
Save Time and Effort
Our experience and expertise mean we process your payroll efficiently and effectively. We contact you on agreed dates with payroll for review but are here if you need us to answer questions and resolve queries, quickly and clearly.
You’ll know that you’ll have payroll on time each month without having to prompt.
Avoid Legal Risks
HMRC make changes to PAYE legislation on a regular basis, which can impact your payroll directly. One of our core tasks as a business is to keep up to date with these changes, ensuring that all our clients are protected from the impact of missing a change, which may result in a penalty being issued by HMRC or The Pensions Regulator.
Transparent Reporting
The payroll report and communication with you each pay period is clear and concise. The deduction of tax and NI, pension contributions, and employers’ pension and NI are shown simply. Questions can arise around how tax and NI are deducted, and these are answered clearly and simply to ensure you understand the costs around payroll for your nanny.
Peace of Mind
Ensuring that your payroll is completed, and Real time information (RTI) submission are made to HMRC on time is monitored to ensure we never miss a deadline. Uploading of the pension contribution file to Nest is completed at the same time, ensuring that pension payments are made by the deadline and The Pensions Regulator’s requirements are satisfied.
Comprehensive Services at Your Fingertips
PayrollAbility was born to ensure that small employers receive detailed attention to their payroll. As the employer of a nanny, you need friendly and approachable support, along with the reliability and expertise of a corporate payroll bureau. Welcome to PayrollAbility!
Get Started With Our Nanny Payroll Today!
Complete our ‘get in touch’ form found at the right of your screen, telling us how you’d like us to contact you, or call the office on 01273 56 92 27. We’d love to speak to you!
How It Works
We need information from you about the person you nominate to be the employer, and details about your nanny. Our simple forms will guide you through the process, ensuring we gather everything we need in one step. Once we have this, we get to work with our usual proactive approach, setting up payroll within our workflow system, completing your employer registration with HMRC and setting up your Nest pension scheme. At each step, we keep you updated for peace of mind. The date of your first payroll will have been agreed, and at least 3 working days prior to your first pay date we’ll send your first payslip and summary to you for review.
Affordable Pricing
Monthly payroll for nannies begins at £35.20 per month which includes employer registration, processing of a nanny leaving your family and a new one being hired and added to payroll, pension processing, including upload of files to Nest, and year end with P60 being sent directly to your nanny, and to you for your records as an employer.
Our contract has a one-month cancellation period, ensuring that if you change your mind about employing a nanny, you are not locked into an annual contract.
Nanny Payroll FAQ’s
The questions below have been asked by client previously.
How much do I need to pay my nanny?
Nannys and childminders are covered by National Minimum Wage legislation. At the time of writing, the National Minimum Wage is:
- Aged under 18 (but above compulsory school leaving age) – £6.40 per hour
- Aged 18 to 20 inclusive – £8.60 per hour
- Aged 21 and above (national living wage rate) – £11.44 per hour
From the 1st of April 2025, these increase to:
- Aged under 18 (but above compulsory school leaving age) – £7.55 per hour
- Aged 18 to 20 inclusive – £10.00 per hour
- Aged 21 and above (national living wage rate) – £12.21 per hour
Are there any other costs I need to consider when employing a nanny?
Yes, there are. Aside from the gross pay for your employee, there is employers NI and employers’ pension to take into consideration when working out the full cost of employing your nanny. At the time of writing, from April 2025, employers NI is 15% of the nanny’s gross salary above £417.00 per month. To calculate this additional cost, use the formula shown below:
Do I need employers’ liability insurance if I employ a nanny and why?
Yes, you do. Under the Employers’ Liability (Compulsory Insurance) Act 1969 you are legally required to have employers’ liability insurance. This gives cover to you and your family of your nanny suffers an injury or an illness caused as a direct result of the working for you. You may find employers liability insurance costs in the region of £110.00 per year, however you may also be covered for domestic staff as part of your home contents insurance. Speak to your cover provider to find out if there is cover built into your policy or if it can be added at a small cost.
Do I need to enrol my Nanny into a pension scheme?
Yes, you do. Even if your nanny has advised that they do no want to join or remain in the scheme, there is a legal requirement to initially enrol then into a scheme that you provide. To qualify for auto enrolment, at the time of writing any employee earning more than £833.00 per month must be enrolled. There is then an employer obligation to deduct pension contributions of 5% from gross on the above basis and pay an additional 3% employer contribution.
The employee can choose to opt out of the scheme, but will be re-enrolled every 3 years in line with the re-enrolment process as outlined by The Pensions Regulator.
Contact Us Today
Complete our contact form, and we will get back to you, or call us on 01273 56 92 27. We’d love to speak to you!
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