Nanny tax article in FT

[Charliebear20000]

Anyone else woken up to household panic after this FT article on thousands of "tax dodging" households who employ some help ?!

My help is more "housekeeper" than nanny (not supposed to sound as grand as it perhaps does), she comes in (parts of) 5 days a week. Cleans, helps with 3 kids.....she has 2 other employers..... But I pay her cash.....am I doing anything wrong? When does a nanny become a nanny to the tax man?

In response to your original question no, as we use a nanny payroll company.

I don't think it matters whether she is a housekeeper, gardener, chauffeur or nanny - she should be on your payroll.

More about the changes to PAYE on Monthly rather than Quarterly reporting.

If they have another job or if they earn over the LEL (£107 per week, 2012/13 tax year) you have a duty to register as an employer. The chances of the person being self employed when doing this kind of work is quite low, though not impossible (cleaners seem to be able to be self employed). Are you telling them the hours of work, what duties they have to do, do you provide the cleaning products? If they are able to tell you to sling your hook they are not coming in at 9am but will be in at some point during the morning maybe around 10 ish... then they might be more self employed.

Employment status is highly complex, your 'house keeper' may be wise to contact HMRC and discuss their various 'jobs' with them and ask for a ruling for each 'job'. Some of them may well be Self employed, whilst others may be Employed.