Picking up friend's kids from school 3 days per week - nanny or babysitter? How will I be paid?

[wildspinning]

I have been asked by a friend to collect her kids from school three days a week and look after them for 1.5hrs each time at her house until her husband finishes work. This is on the basis that I will be paid.

I know I don't need to register as a childminder to do this, but how should they pay me? Do I need to register with HMRC as a self-employed 'babysitter' or nanny and invoice my friend for the work done, or does my friend have to register as an employer and pay me as her employee?

Also, do I need insurance to do this little job?

I would be really grateful for any advice. Thanks in advance.

It is not ad-hoc so seems more like a nanny to me. Does not sound like you are getting to choose when to work, so you sound like an employee, with your friend telling you when to work.

You would not be paid enough for your friend to register as an employer, unless you have another job. Will this be your only job?

Yes you need insurance. I advise everyone who looks after children to have insurance

Don't think you can be se for this job as you don't dictate the hours - the mum does

It's for 4.5hrs a week so depending if you do any other jobs then you may not pay tax

Your friend may not want to register as an employer as only a few hours and may pay you cash - tho obv I can't recommend or advise this as illeal

Hi there, thanks a lot for your replies.

Yes this will be my only job for the time being. If my friend doesn't need to register as an employer but pays my wages (£45pw) direct into my bank account, which I would much prefer as defo don't want to do cash in hand, do I need to tell HMRC I'm earning this money? I feel uncomfortable about being paid for a job without being given payslips!

TIA for your help.

Also re insurance - do I get my own nanny insurance or does my friend get insurance for me?

Thanks.

Given the pay rate, friend would not need to register as an employer IF this is your only job.

HMRC Register as an Employer - ALL the conditions need to be met. Thresholds can be seen here Lower Earnings Limit for NICs is currently £109 a week.

Even though they do not need to register as an employer, when they pay you they should still give you a payslip. They can do that simply by using a duplicate book (available from stationers) and write on it the pay amount every time they pay you, along with details of any deductions... in your case currently that would be zero. I would suggest each payslip says who the employer is, the number of hours worked, so that there is a record kept of what hours you did and the amount paid.

You may need to complete a self assessment tax return, depending on your circumstances - see Do you need to do a Tax Return.

With regard to insurance, your friend should have employers liability insurance. They should look at their Home Contents insurance to see if that includes the cover needed to cover a domestic employee.

With regard to you, if you can get it (the underwriters will have qualifying criteria) then it is a good idea to have Public Liability Insurance, which is designed for nannies. Available via insurance brookers/arrangers such as Michel, Nannyinsure, Enchanted insurance. I suggest you read the policy document or at least a summary BEFORE you part with money, as each insurance provider will have various conditions. Talk to the brookers, don't buy online as your circumstances are different to usual and you need to make sure you meet the criteria of the underwriters - for example, do the underwriters need you to have any childcare training?

Your local tax enquiry centre may be able to tell you if you need to declare the income via self assessment.

If you get any benefits you may need to tell them about the income.

Keep in mind that people on here can not give you tax advice, just point you to further information.

Hi Nick, thank you SO much for all this very helpful info. I really appreciate it.

I'll now make enquiries with the tax office, insurance brokers etc and did discuss it further with my friend (it's all informal at the mo).

Thanks once again.