ELI for 99
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Thought you were perfect for the busy working mum.  Keeping me up to date and giving me one less thing to worry about.
Mrs I H - Swanmore

Before & After-School Nannies

Before and after-school nannies have become the choice for many parents who require wrap around childcare. Below includes some tips to assist parents when they take on a term-time nanny.

Does holiday entitlement apply?
Yes. For example if you employ a nanny for 2 hours a day, 5 days a week (10 hrs a week) for 37 weeks of the year the nanny will accrue 40 hours of holiday entitlement per year. Therefore the nanny is entitled to 4 weeks off per annum (this includes pro rata entitlement to bank holidays). The holiday entitlement should be arranged when the placement is made so both parties can arrange a suitable time for the annual leave. Usually if the nanny works during term time only, the nanny's holiday can be taken during the school holiday.

To calculate holiday entitlement for your nanny visit the Holiday entitlement page on the Nannytax website or contact us on the Agency Advice Line.

Do I need to declare my nanny’s salary to HMRC?
Maybe.

  • If you employ a nanny who earns less than £109* per week and her only employment is with you then you will not have to declare the salary to HMRC.

  • If you employ a nanny and pay her less than £109* a week but she has another job then you will have to declare her salary to HMRC or use a service such as Nannytax.

  • If you employ a nanny and pay her more than £109* per week then you are required by law to declare her salary. Nannytax is a comprehensive payroll and employment law support service for employers of nannies. To find out more about our service, please refer to About Nannytax.

*Lower Earnings Limit 2013/2014

What if nanny uses her own car?
Employers can pay their nanny up to 45p per mile tax free.

Can I use childcare vouchers to pay the nanny?
If you employ an Ofsted Registered nanny you can use childcare vouchers towards paying your nanny’s salary. Find out more about Ofsted Registration for nannies and Childcare Vouchers for parents.

Insurances to consider
There are 3 insurance policies to consider:

  1. Employers Liability Insurance – If the nanny will be spending time within your home then you are required by law to have Employers Liability Insurance

  2. Public Liability Insurance – This is an insurance to protect the nanny should a claim be made against her if the children cause an accident or be injured themselves while the nanny is taking care of them. Nannytax provides a nanny specific PLI, read more information on Nannyinsure.

  3. If the nanny is using her own car as part of her role then she needs to make sure that she has car insurance that covers her for ‘business’ use.

Should my nanny have a DBS check?
Yes. If you employ a nanny from an agency then they will ensure that she has a recent DBS check for childcare.  DBS stands for Disclosure and Barring Service.  DBS replaced CRB (Criminial Records Bureau) on 1 December 2012.

Should we have a contract of employment in place?
Yes. Nannytax provides a specimen contract of employment. You can choose from a comprehensive or ‘lite’ version. Alternatively your local nanny agency may be able to assist you with this too.

Does the National Minimum Wage apply?
Yes, unless your nanny lives in your house and is treated as part of the family. Visit our rates and thresholds page for up-to-date NWM rates.

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