Do Part-Time Nannies Need to Be on Payroll Too?

If your nanny only works a couple of afternoons a week, it’s easy to assume you don’t need to “go full payroll” for them. Maybe you pay them in cash, or transfer a set amount every Friday and call it done.

But here’s the key point: in the UK, “part-time” doesn’t mean “not an employee”.

If your nanny is working in your home, on your schedule, they’re very likely an employee – and that means they should be on PAYE payroll, even if they’re only doing a few hours.

In this article, we’ll unpack when part-time nannies need to be on payroll, what your legal responsibilities are, and how to keep things simple without getting lost in HMRC jargon.

Part-time doesn’t change their employment status

Employment status is about how your nanny works, not how many hours they do.

A nanny is usually classed as an employee if:

• They work regular hours for your family

• You decide what work they do and when

• They work in your home, using your equipment

• They can’t just send someone else in their place

All of that can be true whether they do:

• 10 hours a week, or

• 50 hours a week

So even if your nanny only comes two afternoons after school, they can still be an employee who must be on payroll.

When do I definitely need PAYE for a part-time nanny?

In practice, you’ll usually need to register as an employer and run PAYE if:

• Your nanny earns above the Lower Earnings Limit for National Insurance (each tax year this is around the £120–£130 per week mark, before tax – check the current figure when you set things up)

• Or they have another job and you’re told to operate PAYE via their tax code

• Or you’re providing benefits like accommodation that could have tax implications

Even if your nanny earns below the threshold, you might still choose to run payroll so that:

• They get proper payslips and records

• Their employment is clear for things like mortgages, visas, or benefits

• You’re already set up if their hours or pay increase later

The safest mindset is:

“If I’m regularly paying a nanny to work in my home, I should treat this as a proper employment arrangement.”

“Can’t we just agree a cash rate between us?”

A lot of families start out thinking:

• “It’s only 8 hours a week, we’ll just transfer the money.”

• “She’s happy with cash – it’s easier for both of us.”

The problem is, it’s not compliant, and it leaves both sides exposed:

• You’re not meeting your legal duties as an employer

• Your nanny may miss out on statutory rights (sick pay, maternity pay, pension, etc.)

• If there’s ever a dispute or HMRC query, there’s no clear record

It also risks resentment later if your nanny realises friends in similar roles are getting:

• Paid holidays

• Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP) (if eligible)

• Pension contributions (if they meet the criteria)

Treating even a part-time nanny as a proper employee from the start is the fairest route – and it actually keeps things simpler long-term.

What about very occasional or ad-hoc babysitters?

This is where things can look a bit different.

An occasional evening babysitter might be self-employed or simply doing casual work if:

• They work for multiple families

• They set their own rates and availability

• There’s no ongoing, regular employment pattern

But once you have someone:

• Coming every week

• Doing the same pattern of hours

• Where you control the days, times and duties

…it’s far more likely they’re an employee and should be treated as such.

If someone is doing regular school pick-ups, homework help, dinner, bath, and bedtime in your home – even just 2–3 days a week – that’s very clearly a part-time nanny role, not just casual babysitting.

Part-time nannies still get employment rights

Being part-time doesn’t reduce their basic rights – it just means they’re pro-rated in line with their hours.

A part-time nanny who’s on payroll is still entitled to:

• Paid holiday – at least the statutory minimum, adjusted for their hours

• Itemised payslips

• Statutory Sick Pay (SSP) if they meet the eligibility criteria

• Statutory Maternity Pay (SMP) and maternity leave if they meet the conditions

• Pension auto-enrolment, if they earn enough and meet the age criteria

• Protection from unlawful discrimination and unfair dismissal (subject to length of service)

They don’t lose these rights just because they’re called “part-time”.

What does “being on payroll” actually involve?

The phrase “putting them on payroll” can sound like a huge, corporate process. In reality, it boils down to a few essentials:

• Register as an employer with HMRC

• Set up PAYE (either through software or a payroll service)

• Calculate your nanny’s:

  • Gross pay

  • Income tax

  • National Insurance contributions (theirs and yours)

  • Pension contributions, if applicable

• Produce a payslip each time they’re paid

• Send the required Real Time Information (RTI) submissions to HMRC

• Keep basic employment records

It sounds like a lot when you write it out – but once it’s set up, it becomes a simple monthly or weekly routine. And if you use a nanny payroll service, most of it is handled for you.

“What if my part-time nanny earns below the tax thresholds?”

This is where many parents get confused.

Even if your nanny earns below the point where they pay tax or NI, you still:

• May need to register as an employer

• Should keep proper records

• Should issue payslips and a P60 at year-end

And your nanny may still want those records for:

• Proving their income

• Mortgage or rental applications

• Visa or immigration processes

Think of payroll not just as “calculating tax” but as formally recognising their employment, with all the admin done properly.

Why doing payroll “properly” actually protects you too

Running payroll for a part-time nanny isn’t just about doing the right thing for them – it protects you as well.

You get:

• Clear records of what you’ve paid and when

• Evidence that you’ve met your minimum wage, holiday pay, and statutory obligations

• Less stress if HMRC ever asks questions

• Fewer awkward money conversations because everything appears clearly on payslips

It’s much harder for a relationship to sour over money when both sides can see exactly how pay has been worked out.

How Hirelo helps with part-time nanny payroll

If you’re juggling work, kids, school emails and the rest of life, the idea of payroll admin for a 10-hour-a-week nanny can feel… unreasonable.

This is exactly where Hirelo steps in.

With Hirelo, you can:

• Set your nanny up as an employee in a few simple steps

• Enter their agreed hours and rate – whether they’re full-time or part-time

• Let Hirelo handle the tax, National Insurance and pension calculations

• Automatically generate compliant payslips and keep tidy records

• Stay on the right side of HMRC without learning payroll rules in your spare time

So your part-time nanny gets the proper employer treatment they deserve, and you’re not spending your evenings wrestling with spreadsheets.

The bottom line: yes, part-time nannies still need payroll

If your nanny is working regularly in your home, part-time hours don’t change the core answer:

• They’re very likely an employee, and

• They should be on PAYE payroll, with proper payslips and rights

Doing it properly from the start:

• Builds trust

• Avoids messy back-pay issues later

• And lets you focus on your family, knowing the “boring but important” stuff is handled.