Can My Nanny Be Self-Employed in the UK?

Written By Anneka Chadha

Many parents ask whether they can treat their nanny as self-employed to avoid payroll.
It might sound convenient — but in almost all cases, HMRC says no. Here’s why.

How HMRC Decides Employment Status

HMRC looks at how the working relationship is structured, not what you call it.
A nanny is usually considered an employee because:

  • You decide their hours, duties, and holidays

  • They work in your home using your equipment

  • You provide regular pay

If that’s the case, your nanny must be on payroll — they can’t register as self-employed.

When a Nanny Might Be Self-Employed

Very few situations qualify, such as:

  • A temporary or ad-hoc nanny working for multiple families

  • A night nanny or maternity nurse who sets their own schedule

  • A self-employed nanny agency contractor (rare)

Even then, HMRC can review the arrangement and reclassify it as employment.

Why It Matters

If HMRC decides your nanny is actually an employee, you — not them — are responsible for all unpaid tax, National Insurance and pension contributions.
That could mean backdated payments, fines, and interest.

What To Do Instead

✅ Register as an employer with HMRC
✅ Run payroll through PAYE each time you pay
✅ Provide payslips and pension contributions

This keeps you compliant, protects your nanny’s rights, and avoids future disputes.

How Hirelo Makes It Easy

Hirelo takes care of:

  • Employer registration

  • Tax, NI and pension calculations

  • Payslips, P60s, and HMRC submissions

You simply add your nanny’s pay — Hirelo does everything automatically for £125 per year.

💡 If you’re unsure about your nanny’s status, Hirelo can check it and handle payroll from day one.

Anneka Chadha
Next

What Happens If I Pay My Nanny Cash-in-Hand?