This includes nannies, housekeepers, gardeners and anyone else working for one family. You’re their employer if you hire them.
The employee 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 send employer tax returns each year - even if they pay the employee in cash
The employer is responsible for paying:
- the employee’s National Insurance contributions
- the employee’s income tax contributions
- 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 set up their own payroll or have a payroll provider do it for them (eg an accountant).
Employers can’t ask their employees to become self-employed.
Nannies and other people working in your home can be self-employed if they work for more than one family.
They’ll have to:
- keep their own records
- pay their own National Insurance
- make a self-assessment tax return each year and pay any income tax
Self-employed people have different employment rights from employees.