Is this a legal way of not having to pay nanny tax out of already taxed income?

[GoldysMum]

I'm sure there are lots of reasons why this wouldn't be allowed and haven't even discussed with dh yet. My thought is that as DH has his own business, perhaps he could put our nanny on the company payroll. He could then lower his own salary by the exact amount of the nanny salary and then that money would only have to be taxed once? Am I being very naive? Hit me with the reasons this isn't possible?

No idea how

Company makes the PAYE deductions using whatever system it has for its own employees and pays you. Boss pays company gross pay plus employer's NI. Company pays PAYE and employer's NI to HMRC when due.

The only possible saving here would be the company saving a bit of corporation tax IF it claimed that the cost of the nanny was a deductible expense of the business.

The company would pay the nanny's PAYE and NIC exactly the same amount as if the nanny was employed by the family directly.

If the company was caught claiming the nanny as a business expense when in reality it is a personal expense it would leave the company open to a tax audit and potential fines plus interest on the tax avoided.