Do I need to hire a nanny as an 'employee'?

[Herberto]

We are looking to employ a nanny (not an au pair) for x days per week for a defined fixed term period (less than 6 months).

The UK government advice states that nannies must typically be employees (not self-employed), as the definition of an employee includes:

• has to do the work themselves
• can be told at any time what to do, where to carry out the work or when and how to do it
• can be moved from task to task
• are paid by the hour, week or month
• can be paid overtime or receive bonus payments

Hiring the nanny as an employee means that I would be required to:

• register as an employer
• have employee liability insurance
• set up and run payroll, or pay someone else to do it on your behalf (even if you pay the employee in cash)
• deduct and pay the employee’s Income Tax and National Insurance contributions

I am posting to ask for advice on whether or not I am understanding this correctly. Is this necessary for a fixed term period of only a few months? Is there a way to hire a nanny on some sort of self-employed fixed term contract?

Thanks in advance.

The vast majority of nannies will be an employee. They do not control when they work. They cannot turn down work requests.
Look at Mutuality of Obligation... does that exist in the arrangement that you propose... you being obligated to provide work, the nanny being obligated to do the work.

You may find that there are people who do a lot of temp roles who have managed to do those for up to 6 weeks or so as self employed. You might find that you could get several different people who do not work any fixed pattern, so a pool of people who you send out a request to and see who is available for that day/few days.

There aren't many scenarios where they could be self employed, unless you have a great deal of flexibility and the nanny can truly choose days/hours etc by agreement. I have done quite a few short contracts and have always been employed.

I'm in the same boat and understand it the same as you.

We are having to pay a payroll company £140 for the pleasure of paying the nanny for 6 months as I just couldn't get my head around doing it myself.

Look at it this way: would your nanny be allowed to decide not to come into work one day, and send in some other nanny that they know to do the work instead? Would that be ok with you?

If not, then they are an employee.

Yes you do need to employ them or use an agency who pays them and you pay the agency. Only exception would be if they had multiple employers and worked for you less than 15 hours a week

Ps running payroll is a doddle, just need to keep good records - all the required software is free from hmrc