You’re 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 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 aren’t usually considered workers or employees.
Carers and personal assistants
You’re 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, eg 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
They’re also entitled to employment-related benefits, if they meet the eligibility requirements. These include:
Tax and employing people at home
The employer must:
- check if the person can work in the UK
- have employer’s liability insurance
- register as an employer and set up and run payroll, or pay someone else to do it on their behalf (even if they pay the employee in cash)
The employer is responsible for:
- deducting and paying the employee’s Income Tax and National Insurance contributions
- paying statutory benefits, eg maternity pay and sick pay
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 and insurance)
Employers can’t ask their employees to become self-employed.