paying tax, and insurance - company recommendations please?

[susiequeue]

Hi all,
we're about to employ our first nanny (very nervous!) the payroll thing seems a nightmare, so I'm definitely going to use a company to do it for us. However there are so many out there, and the costs are wildly varied. The one I'd heard of previously is Nanny tax, but it's much more expensive than some of the others. Does anyone have any recommendations?
Also, do I have to get employers liability insurance, and can I do that via my normal insurance company or are there specialist companies for that too? If so any recommendations?
Many thanks!
Susiequeue

NannyPAYE is used by a lot of people - there is a thread on here about it, as one person had a problem, but it seems to be an isolated incident, so don't let that put you off.

PAYE isn't that complex (in my view), as long as your employee is working regular hours (my employer does it herself). To save costs, you could always try doing it yourself to start with (HMRC send you a CD-ROM which saves a lot of hassle and enables you to do most things online), then if it gets too much, then contact Graham at NannyPAYE.

Employers Liability Insurance is usually part of your household contents (or possibly buildings) insurance - check your policy. If you can't see it, contact your household insurance provider as they will no doubt be able to add it for a minimal fee (with luck for free as it is included by many insurers).

You will find that on Mumsnet (this board in particular) there are many seasoned nanny employers, plus nannies as well - so do please post questions you may have, as someone is bound to know the answer.

I have used nannymatters for 6 years. They have never (touch wood) made a mistake. They charge £180 a year so cheaper than the more well known ones.