Becoming a first-time employer in the UK comes with certain obligations and responsibilities. Here are some key considerations:
1. Register as an Employer: You need to register with HM Revenue and Customs (HMRC) as an employer.
2. Obtain an Employer PAYE Reference Number: Once registered, you will receive an Employer PAYE Reference Number. You will need this number for payroll and tax-related purposes.
3. Set up a Payroll System: Implement a payroll system to ensure accurate payment of wages, taxes, and National Insurance contributions for your employees. You need to deduct income tax and National Insurance from your employees’ salaries and report this information to HMRC through Real-Time Information (RTI) submissions.
4. Provide a Written Employment Contract: Issue a written employment contract to each employee outlining the terms and conditions of their employment. This includes details about working hours, pay, holidays, and other relevant policies.
5. Verify Employee’s Right to Work: You are required to check that all employees have the legal right to work in the UK. This involves checking and retaining copies of acceptable documents such as passports or immigration documents.
6. Enrol Employees in a Workplace Pension Scheme: If your employees meet certain criteria, you will need to enrol them in a workplace pension scheme and make contributions on their behalf. This is part of the UK’s automatic enrolment scheme.
7. Health and Safety: Ensure that you provide a safe and healthy working environment for your employees. Familiarise yourself with health and safety regulations and take necessary precautions to protect your workers.
8. Statutory Benefits and Rights: Familiarise yourself with your employees’ statutory rights, including holiday entitlement, sick leave, maternity/paternity leave, and minimum wage requirements. Ensure you comply with these regulations.
9. Employer’s Liability Insurance: Obtain employer’s liability insurance to cover your legal responsibility in case of any work-related injuries or illnesses suffered by your employees.
10. Keep Records: Maintain accurate records of employees’ personal details, wages, tax deductions, and other employment-related information. You must retain these records for a specific period.

It’s important to note that employment regulations can change over time, so it’s always a good idea to visit the UK government’s official websites for the most up-to-date information.

Tax Nanny Payroll expertise is with statutory payroll matters, and we can advise you on all aspects regarding Tax, NIC, Student Loans, SSP or SMP. For specialist employment advice such as contracts, employment law or HR support, we recommend using ACAS – CLICK HERE

Being employed or self employed is not a matter of choice, but depends on the type of working relationship. See HMRC here for guidance. If a nanny or carer suggests she or he may be self employed you should get confirmation from HMRC and can contact the status customer service team here.

Nanny or Carer Payslips – As an employer you must provide your employee with a payslip. The payslip must show the gross wage, the tax and NI deductions made on behalf of the employee, as well as the net pay.

Nanny or Carer Contract of Employment – You must also provide your nanny or carer with either an employment contract or a written statement of the terms and conditions of her employment, within two months of her starting date. The best place to start is with the Government website here

Nanny or Carer Holiday – Your employee is entitled to paid holiday in accordance with the statutory minimum legal requirements, but of course you can offer more holiday. To work out holiday in your employment you should use the holiday calculator here

Nanny or Carer Pensions – It is a legal requirement for ALL employers to offer auto enrolment to a workplace pension scheme (Most small employers staging date is from June 2015) For more information about pensions click here

Further help – For statutory matters in relation to employment we suggest you visit the direct gov site here