Do I Need to Put My Nanny on Payroll in the UK?

Written By Anneka Chadha

If you employ a nanny, it’s natural to wonder whether you need to run payroll. The answer is simple — yes, in most cases you do.

Once you pay your nanny more than £123 per week (the National Insurance threshold), you’re officially an employer in the eyes of HMRC. That means you’re responsible for collecting and paying your nanny’s tax, National Insurance, and pension contributions through a payroll system known as PAYE.

When Payroll Is Required

You must register as an employer and run payroll if:

  • You pay your nanny more than £123 per week, or

  • You’re their main source of income, and

  • You control their working hours and responsibilities.

These rules apply whether your nanny is full-time, part-time, or term-time.

If you’re unsure, the easiest check is this:
👉🏽 If your nanny works in your home and you decide when and how they work, you’re their employer.

Why Payroll Matters

Putting your nanny on payroll isn’t just about tax. It ensures:

  • Fairness and professionalism – your nanny receives payslips and pension contributions.

  • Legal compliance – you avoid HMRC penalties and backdated payments.

  • Peace of mind – everything from tax to pension is handled correctly each month.

It also builds trust. A nanny who’s paid properly knows they’re valued — and that stability helps both of you.

What Payroll Actually Involves

Running payroll means:

  • Registering as an employer with HMRC.

  • Calculating your nanny’s tax, National Insurance, and pension deductions.

  • Sending this information to HMRC every time you pay them (called an RTI submission).

  • Providing your nanny with a payslip each pay period.

It might sound technical, but tools like Hirelo automate the entire process so you never have to do the maths or filings yourself.

How Hirelo Helps

Hirelo takes care of everything — from HMRC registration to payslips and pensions — for £125 per year.

You simply record your nanny’s hours; Hirelo handles the rest automatically:
✅ Calculates tax and National Insurance
✅ Sends HMRC reports in real time
✅ Generates digital payslips and annual P60s
✅ Keeps you compliant and stress-free

It’s the simplest way to do things properly — and it protects both you and your nanny.

Next Steps

If your nanny earns over £123 per week, payroll is required by law.
Instead of worrying about paperwork, you can start today with Hirelo and stay fully compliant.

💡Start your nanny payroll in minutes with Hirelo — just £125 per year.

Anneka Chadha
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