Yes, in England your nanny must be Ofsted registered. Many nannies are already Ofsted registered so if you are in the hiring phase then I would suggest you make that a condition on your advert and check registration at interview (they can show you a registration certificate).
Ofsted registration is not difficult, it's just time consuming. Ofsted has a 12 week target for registrations, so some will happen quicker than that and some will take longer.
The nanny must meet the criteria for registration:
- Enhanced DBS check (which they can get from www.OfstedDbsApplication.co.uk) ideally on the DBS Update service.
- Nanny public liability insurance.
- Level 2 or above childcare training. Alternative accepted is Common Core Skills & Knowledge (this can be done as a one day course in London or via distance learning).
- First Aid - this must be suitable for the role, so in most cases this means a Paediatric First Aid course that is 12 hours (can be 6 hours practical + 6 hours online).
- Pay the annual fee, currently £103 per year.
Your nanny can become a member of BAPN (the association for professional nannies) if they are not already and have access to a guide to Ofsted registration. BAPN membership is around £40 per year.
As an employer you can pay your nanny's salary via Tax Free Childcare (note it can take about a week for money to flow through the system, so if payment due to nanny at month end, make sure you action it by 22/23rd of month). You can also pay your Employers National Insurance and your employees Income Tax and National Insurance.
If you have two children then you can pay up to £20,000 of childcare costs via Tax Free Childcare... you would pay £16,000 and Government topup would be £4,000. Note: Max top up per child is £500 per three month period.
So to answer your question, it can be a total pain but it's really worth it to you.