Using Tax Free Childcare for self employed nanny

[epaj]

Hey, we're about to take on a nanny - she's self employed so will charge us an hourly rate. Provided she is registered with OFSTED, can we pay her via Tax Free Childcare?

Or does a nanny have to be on PAYE in order to be paid via TFC?

Your nanny can only be legally classified as self employed if she has multiple customers (at least 3 families), can choose when and where she works and is at liberty to send a substitute or employ an assistant if she wants to as she juggles the workload of thise multiple families. If those don't apply, you will be rightly seen as pretending she is self-employed in order to evade paying National Insurance and in order to sidestep giving her proper employment rights. Trying to also squeeze extra out of the state is therefore a bit off really. Do it properly with her as employee and you as employer, and then yes,so long as she is ofsted registered you can use the tax-free childcare.

Yes you can use Tax Free Childcare scheme. I have done various short term temp assignments where I decided if I could to do the work or not, and the parents paid via TFC. As long as it is enabling the parents to work it is fine.

It's pretty unlikely that she can be self-employed.