Your nanny's tax and NICs - payment deadlines and penalties
If you fail to deduct tax and NI from your nanny's salary and pay these over to HMRC on time you risk both interest and penalties.
When you employ a nanny in the UK you must pay regular income tax and National Insurance Contributions (NICs) on her behalf. You must also pay employer's NIC. As you are classed as a small employer you only have to pay these liabilities to HMRC on a quarterly basis. Failure to pay all tax and NI liabilities before 19 April each year will result in interest being charged on the amount outstanding. All quarterly tax and NI payments are due to be paid to HMRC by the 19th of the month following the end of each calendar quarter. Nannytax will advise you accordingly in good time.
For new employers the first payment will only be due once your new PAYE scheme has been set up by HMRC, and you will not be penalised if this is after the due date for any of the first three quarters of the tax year (starting in April). Nannytax will submit a Full Payment Submission (FPS) electronically every time you pay your nanny on your behalf. Any changes to employment arrangements should be reported to us promptly, as any changes that are not reported may affect the benefits your nanny receieves and late filing will trigger automatic Revenue Penalties.When you subscribe to Nannytax we ensure that you always know exactly when and how much to pay HMRC.