HTML Preview Self Employed Nanny Contract page number 1.
Last updated: June 2014
Infomation is provided as guidance only. Whilst every effort has been taken to
ensure the information is accurate and up-to-date, Nannytax will not be held
responsible for any loss, damage or inconvenience caused as a result of any
inaccuracy, error or omission.
We authorise users to view and download Nannytax’s materials for their use. You
must keep the copyright, trademark or other notices contained in the original
material on anything you download and these should not be altered in any way.
Materials should not be reproduced without the prior written consent of Nannytax.
Materials should not be altered or used in a misleading context.
Nannies & Self-Employment
Whether someone is employed or self-employed
depends on the terms and conditions of their
work.
How to determine employment
status
A worker is probably considered employed if they:
• have 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
• work a set amount of hours
• can be moved from task to task
• are paid by the hour, week or month
• can be paid overtime or receive bonus
payments
A worker is probably considered self-
employed if they:
• can hire someone else to do their work or
engage helpers at their own expense
• risk their own money
• provide the main items of equipment needed
to do their job, not just the small tools that
many employees provide for themselves
• agreetodoajobforaxedpriceregardless
of how long the job may take
• can decide what work to do, how and when
to do the work and where to provide the
services
• regularly work for a number of people
• have to correct unsatisfactory work in their
own time and at their own expense
* Please note that these lists are not exhaustive.
In most cases nannies do not meet HMRC’s
criteria for self-employment and are classed as an
employee. Therefore it is normally the employer’s
responsibility to contact HMRC, register as an
employer, operate a PAYE scheme on their
nanny’s behalf, pay any Tax and NI due and
abide by UK employment law.
The child carers that often do meet the self-
employment criteria are childminders and
maternity nurses.
It is important that both parents and nannies
know the nanny’s employment status as it affects
employmentandrightstostatutorybenets,
and how to pay Tax and National Insurance
Contributions. Whether a worker is employed or
self-employed should be clearly stated in the
nanny’s contract or written statement of the terms
of employment.
The exception to the rule
In some circumstances HMRC may grant self-
employment status, for example, if the nanny
works in a series of temporary positions or if the
nanny works in a share arrangement and cares
for the children from three or more families all
at the same time. In the case of a share with 3
or more families, it is UK Childcare Law and an
Ofsted requirement that she registers on the
compulsory Childcare Register (and Early Years
Register, if applicable) as a childminder. Obviously
as a childminder, she can then be classed as self-
employed if desired.
Transfer of employment status from
one nanny job to another
If a nanny starts a new job having previously
been self-employed, it is advisable that her
new employer contacts HMRC and requests
conrmationinwritingthattheirself-employment
status still applies in the new position.
The transfer of self-employment status between
jobs is not automatic, and each situation should
be considered individually. This is the employer’s
responsibility,andifwrittenconrmationfrom
HMRC is not sought and it later comes to light
that the carer is not self-employed, then it is the
employer, not the carer who will pursued for
unpaid taxes.