A Guide to giving your Nanny a Christmas Bonus in 2024
As Christmas 2024 approaches, you may be wondering how you can show your nanny a little extra appreciation during the festive period.
Many families choose to give their nanny a Christmas Bonus because extra spending money during the Christmas season is always sure to go down a treat!
Do I need to give my nanny a Christmas Bonus?
Many families love giving their nanny a bonus at Christmas as an extra ‘thank you’ for all their hard work. However, you are not required to pay your nanny a Christmas bonus, unless it is stated in your nanny’s employment contract.
How much should I give my nanny for their Christmas Bonus?
Determining how much to give your nanny for their Christmas bonus is quite flexible. Typically, families give their nanny a percentage of their nanny’s yearly salary – this can range from half a week’s pay to a full month’s pay. The choice is yours!
Will I pay tax on my nanny’s Christmas Bonus?
Yes, you will need to pay tax on any bonus you give your nanny, and this must be reflected on your nanny’s payslip.
Can I pay my nanny’s Christmas Bonus in cash?
Yes, you can pay your nanny their Christmas Bonus in cash but you will need to make sure that this is reflected on your nanny’s payslip.
What budget-friendly alternatives are there instead of giving my nanny a Christmas Bonus?
Showing your nanny extra appreciation at Christmas doesn’t need to be monetary! If money is a little tight this year, there are plenty of alternatives which are just as meaningful. Here are some suggestions from the Nannytax team:
- A hamper filled with tasty goodies
- A handmade gift from the children
- A photograph of a special memory, inside a nice frame
- An experience gift certificate, like a cooking class or afternoon tea
Do I need to report the Christmas gifts I’ve bought for my nanny to HMRC?
Gifts which are under £50, that are not cash or vouchers, don’t need to be reported to HMRC, as these would be considered a ‘trivial benefit.’
Trivial benefits include:
- Gifts which cost £50 or less to provide
- Are not cash or a voucher
- Are not a reward for work or performance
- Are not in the terms of your nanny’s contract
I’m a Nannytax Customer, how should I pay my nanny their Christmas Bonus?
If you’d like to give your nanny a Christmas bonus this year, you can easily do so through your Members Area. Simply go to the Manage Employees tab, select Bonus, and specify whether it’s a cash bonus along with the amount. Our payroll team will then make sure the bonus and any required tax adjustments for HMRC are reflected on your nanny’s next payslip.
Please note, for your nanny’s Christmas bonus to be reflected in their December payslip, you must let us know by the Payroll Cut-off Dates:
- For Nannytax Plus customers, this is the 6th December 2024
- For Monthly Nannytax customers (monthly payslips), this is the 12th December 2024
- For Weekly Nannytax Customers (weekly payslips), you will need to let us know of any changes by the Wednesday the week before the payslip is due.
- For Variable Nannytax Customers, this is 25th December 2024
If you let us know about your nanny’s Christmas Bonus after the cut-off dates, the bonus will be reflected in your nanny’s January payslip.
