FTM and first time using babysitter. Advice please.

[SproutingParsnip]

It's probably a really basic question, but I'm a FTM and have not employed a baby sitter before.
We've agreed an hourly rate. If she worked 3.5 hours, would I pay her for 3.5 or 4, because she's worked part of an hour?
I'm a bit confused about tax and NI and pension contributions. Am I liable for any of that?
Any other advice for me to help her out? I'm hoping this becomes a long-term regular-ish relationship.
Sorry to be a complete dunce! TIA for any advice.

What do you mean by a babysitter?

Is it someone who you will call upon on occasion and if they are available then you will hire them for just a few hours in the evening? Or are you talking a more permanent arrangement of them working a set number of hours each week?

For an ad hoc arrangement I'd found it up to 4. If you make it regular then you would need to do the finances properly and you'd also get into paid holiday , sick pay etc

I would pay for 3.5 hours if that is what you used her for, but I generally "round up" to 4 hours if for example I use her for 3 hours 40 mins.

Is this a casual arrangement where you use a babysitter once a week or a couple of times a month for a night out? I'm not in the UK but I wouldn't have thought that such an arrangement would lead to an employment relationship necessitating NI etc as there is no obligation on the babysitter to accept assignments... I have never heard of anyone paying NI (or equivalent) for a casual babysitter. Of course if this is a more regular arrangement, such as a part/full time nanny, then the situation would be different.

My top tip with a new babysitter is that if you can afford it, have her come early the first night to play with your Dd so that if she wakes later, she won't be frightened by a stranger... Hth

We'd hopefully aim to use her every couple of months or so, so DH and I can have a 'date night'.
If she looked after DD for a couple of hours in the day and say took her for a walk / to the park instead of just looking after her in our own home, would that make a difference?
She's not a registered child minder, she's a recent retiree I've got to know at my local church who's looking just to make a little extra money.

I think you aren't employing her (unless it becomes a very regular occurrence with set hours each week) so you don't have to worry about PAYE/NI/pension.

She could (and technically should, although I doubt they worry about occasional babysitters) ring HMRC and register as self employed and fill out a tax return, although it sounds very unlikely she would be liable for any tax or other contributions/deductions unless she is otherwise employed or receiving benefits etc. As she will earn under the threshold. Weirdly HMRC are usually really lovely and helpful about this kind of thing, so if you are worried about it she/you could just give them a ring.

If you're only employing her for one night a month, she won't be anywhere near the threshold for income tax to be deducted and, as she is a recent retiree, I suspect there is no other income that would push her over the threshold. Just make sure you're both clear on the rate per hour and how much notice she'll be given when you need her to come in.

With regards to how much to pay her for if she works 3.5 hours, as a nanny who babysits occasionally, I would be happy to be paid for those 3.5 hours and would not think it odd if the family didn't round it up to 4. If, however, you have to literally count the pennies to give her 3.5 hours' worth, you should probably round it up to the next pound. If I went over the 30 minute mark, I would then expect it to be rounded up to the hour.

If it was just one a month and she did that for several families, then it would fit with self employment.

Daytime is fine as long as she does not take your DD back to her home for several hours. She needs to avoid becoming a registered childminder. So best to care for DD out and about and at your home.