I have a very good friend who is also a qualified Nanny. I would like to employ her to work in my home three days a week and she is keen to do so. Thing is I can't really afford to pay nanny type rates, well not if you add on tax and VAT. She is more than happy to work for me for a reasonable sum per hour which is much more than she currently earns working in a nursery. So really I would be looking to pay her by the hour like a childminder, but working in my home. If I do this and pay her cash in hand, are we both breaking the law? Does anyone know of a way around this or have a similar arrangement?
Thanks