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The new Government Rates for the Tax Year 2020-21.

Tax bracketsGross per weekDescription
Lower Earnings Limit £120 gross per week or less If you pay your employee the LEL or below, there is nothing due to HMRC and your employee will not be entitled to any state pensions or benefits.
Bracket between Lower Earnings Limit and NI Threshold Between £120 - £169 gross per week If you pay your employee between these figures there is nothing due to HMRC, however you should still register so your employee will be entitled to state pension and benefits.
Employer's (Secondary) NI Threshold £169 gross per week or more If you pay your employee £169 or more you must register and pay Employer’s NI.
Employee's (Primary) NI Threshold £183 gross per week or more If you pay your employee £183 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI.
Tax Threshold Over £240 gross per week If you pay your employee £240 or more you must now also deduct tax on from your employee.

Tax and NI Payments

If your Tax and NI bill is below £1,500 per month you will have to pay the Tax and NI to HMRC on a quarterly basis. Be aware that late payments can result in hefty fines and interest being applied.

If your monthly liability bill exceeds £1,500 per month, you must pay HMRC every month.

Payment DeadlinesFinancial QuarterMonths Covered
19th July 1 Apr, May, Jun
19th October 2 Jul, Aug, Sep
19th January 3 Oct, Nov, Dec
19th April 4 Jan, Feb, Mar

National Minimum Wage (NMW)

*The National Minimum Wage (under 24) changes every October, the National Living Wage (25+) changes every April.

AgeGross per hour
Under 18 £4.55
Age 18-20 £6.45
Age 21-24 £8.20
Age 25+ £8.72
Offset Allowance £57.40 per 7-day week

Pension Contribution

Below is a table that illustrates the minimum percentage of the employee's pay that an employer, an employee and the government will have to contribute this financial year.

6th April 2020 - 5th April 2021 3% 4% 1% 8%


Statutory Maternity Pay (SMP)

The first 6 weeks of SMP are paid at 90% of average gross weekly earnings. The remaining weeks of the maternity pay period (up to a maximum of 33 weeks) are paid at the current SMP rate of £151.20 gross per week (for the 20-21 tax year), or 90% of the employee's weekly earnings, whichever is lower.


Statutory Sick Pay (SSP)

The 2020-21 rate of SSP is £95.85 gross per week. The first 3 consecutive days of illness are unpaid as SSP starts on the fourth consecutive day of illness and can be paid for up to 28 weeks.


The Nannytax Payroll Service

Have a look at our all-inclusive Payroll Service to see how we can help you with the admin involved with hiring a nanny.

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Paying Tax and NI

Find out how Tax and National Insurance is paid when hiring a nanny, including employer and employee responsibilities.

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Salary Calculator

Work out the net and gross salary, and your total cost of employing a nanny using our helpful salary calculator.

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