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Workplace Pensions | Nannytax

Workplace Pensions

Workplace Pensions for Nannies

Under the Pensions Act 2008, all UK employers must offer their employee a workplace pension scheme if they meet the criteria. Once enrolled into the pension scheme, you (the employer), your nanny and the Government will be required to contribute to the pension. Learn more about workplace pensions below or find out about our nanny pension service subscription add-on.

Does my nanny qualify for a workplace pension?

Your nanny qualifies for a pension scheme if they:

  • Are aged between 22 years old and the State Pension Age.
  • Earn £10,000 or above per annum.

Am I responsible for my nanny’s workplace pension?

Yes, The Pensions Act 2008 states that all UK employers must ‘automatically enrol’ their qualifying employees into a workplace pension as soon as they start their role.

Can my nanny opt out of the pension?

Even if your nanny does not wish to remain in the pension scheme, they must be enrolled into one initially (if they qualify). They will then have the choice to ‘opt out’ if they wish.

As part of the Pensions Act 2008, all UK employers must ‘automatically enrol’ their qualifying employees into a workplace pension as soon as they begin working for them.

What is Auto enrolment?

  • Auto enrolment is a Government initiative which requires all UK employers to enrol any qualifying employees into a workplace pension scheme and make contributions towards the pension.
  • Once an employee has been enrolled, they can chose opt out. An employee can opt back in at any time after opting out.
  • All qualifying employees must be automatically enrolled into a pension scheme. If they do not wish to remain in the pension scheme, the employee can choose to opt out.
  • If an employee does not qualify for a workplace pension they still have the right to join one.

The costs of Automatic Enrolment

The table below shows the minimum percentage that you, your nanny and the Government will contribute towards the pension.

 

Dates Employer Nanny Government Total
Prior to 6th April 2019 2% 2.4% 0.6% 5%
(Present) 6th April 2019 onwards 3% 4% 1% 8%

Nannytax and Nanny Pensions

This may be the first you heard about pensions and auto enrolment duties when employing a nanny. Don’t worry Enable Autoenrol is our fully-managed pension service and that means our team of pension specialists can take this off your hands – phew! Learn more about our Nannytax subscription and add-ons below.

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Tax & National Insurance

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