Tax/NI for nanny earning £95 per week

[FormbyDoula]

We have a friend of the family who has done childcare qualifications and wants to work in childcare.

I have three children so would like her to do school pick-ups from September and help with teatime/bathtime etc three or four times a week. Her wages would be £95 per week.

If I employ her as my nanny, what are the tax/NI implications? Would I have to pay any? If not, do I still have to register as her employer? I assume I would. Is there any way I could pay her for this work without being considered her employer?

It's under the NI LEL (£107 per week for 2012/13 tax year... see HMRC:PAYE Basics) so you do not have to operate PAYE unless this is not their only income.

Assuming this is their only income source, then you do not have to register as an employer - see HMRC: When You Need To Register.

Do read the information in the links and come to your own conclusion based on the full information you know about this person and the job they will be doing for you. If in any doubt, contact the New Employer Helpline for advice - 0845 60 70 143.

If she has any other income, you will have to register yourself as an employer and do all the NI/PAYE stuff, unless she is able to get HMRC to agree to her being self-employed.

Thanks so much for your replies.