All workers earning money for doing a job, full time, part time, temporary or on a casual basis have a legal obligation to pay Tax and National Insurance to the state.
- All employees in the UK are obligated to contribute financially to the state through Pay as You Earn (PAYE).
- Employers, including those of nannies, are required by law to make the deductions from the employee on the state's behalf and pay it HMRC.
- Not to do so is considered 'PAYE fraud' and can be considered as a criminal offense.
If the nanny's income is not declared
It is considered a criminal offence to not pay the correct amount of Tax and National Insurance. If caught, both your employer and you could face a series of penalties. These may include:
- Repayments of any unpaid Tax and NI to HMRC including interest
- Potential fines for lack of payments and lack of RTI information
- Criminal investigation with a risk of prosecution and imprisonment
Nannytax can help
We recommend that you declare your nanny's income to HMRC as soon as possible. Nannytax can help you with all of this.
- If you are behind with your tax payments we can put your affairs in order and bring you up to date, however far in arrears you are.
- We can deal with HMRC on your behalf, leaving you completely hassle-free.
- We can organise your Tax and National Insurance payments for past months and years.
- We can also back-date payslips for you for previous months and years.