arrow_upward arrow_upward
Statutory Excuse | Nannytax

Statutory Excuse

As an employer, you must carry out the appropriate checks and gather the required documents that show your employee has the right to work in the UK, this is establishing the Statutory Excuse. Failing to do the correct checks could result in a fine of of up to a maximum of £20,000 per illegal worker.

What is Statutory Excuse?

Establishing the Statutory Excuse is a term used when the employer carries out the checks required to verify their employee’s right to work in the UK. It is illegal to employ someone who does not have the right to work in the UK, or who has not been granted leave to enter or remain in the country.

It is illegal to employ someone who does not have the right to work in the UK, or who has not been granted leave to enter or remain in the country.

Failing to check an employee's right to work

If it later comes to light that an employer has knowingly employed someone without the right to work in the UK, they will face prosecution under the Race Relations Acts 1976. Committing an offence like this can carry a penalty of up to two years in prison and/or an unlimited fine.

Failing to establish the Statutory Excuse by not carrying out the checks also carries a punitive penalty of up to £20,000 per illegal worker.

Failing to establish the Statutory Excuse by not carrying out the checks also carries a punitive penalty of up to £10,000 per illegal worker.

Employing Europeans

Nationals from the European Economic Area (EEA) can enter and work in the UK without restrictions. The following is a list of EEA countries:

Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Republic of Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, The Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, UK, Switzerland.

UK Visas & Immigration

For more advice about employing someone from outside the UK please contact the UK Visa and Immigration office or give HMRC a call on 0300 200 3200.

If you would like to access our comprehensive guide, as well as all our other helpful tools and resources, please don’t hesitate to contact us, or alternatively you can get going straight away and set up your nanny payroll now.

You might also be interested in

Nanny Employment Contract

An employment contract should not only help you and your nanny set the foundations for a good working relationship but must provided to an employee by their first day at work.

Benefits in Kind

It’s a nanny employer’s responsibility to report any Benefits in kind to HMRC each year. It’s not completely straight forward as the tax system doesn’t treat all benefits in the same way.

Redundancy

Nannies, providing they meet the requirements, are entitled to redundancy pay like any other employee. Therefore, it is important to know about the legalities of redundancy.