Employing a nanny in the UK: your simple responsibilities checklist

As a nanny employer, you’re responsible for:

• Having a written employment contract
• Running PAYE (tax) and National Insurance through payroll
• Providing payslips every pay period
• Managing workplace pension auto-enrolment

Honouring statutory rights (holiday, sick pay, maternity, etc.)

A contract sets expectations and protects both sides. It should cover: start date, hours, duties, pay, overtime, holidays, sick pay, notice periods, and how you’ll handle things like driving or travel.

Quick actions

• Agree duties, hours, and pay in writing.
• Set notice periods and probation.
• Include holiday entitlement and how to book it.
• Get it signed before the start date (or within the first two months at the latest).

Need a hand? Lily’s can provide a clean, compliant contract template and help you customise it.

If you employ a nanny, you’re an employer in the eyes of HMRC. That means you must deduct Income Tax and NI from gross pay and report via RTI (Real Time Information) each time you pay.

Quick actions

• Register as an employer with HMRC.
• Run payroll (weekly/fortnightly/monthly) and submit RTI on time.
• Keep records of pay, tax, NI, and any student loan deductions.

Lily’s registers you with HMRC, runs PAYE and RTI, and sends you clear “what to pay and when” reminders.

Your nanny must receive a payslip showing pay and all deductions each time they’re paid (paper or digital, both are fine).

Quick actions

• Issue a payslip every pay period.
• Include tax, NI, pension, and any other deductions. 

Lily’s sends payslips to you and your nanny automatically.

Most employers must offer a workplace pension and contribute to it. Auto-enrol your nanny if they:

• are 22 to State Pension age, and
• earn above the annual earnings threshold.

If they’re under 22 or earn less, they can still opt in and you must set it up if they ask.

Quick actions

• Assess eligibility at the start and at each pay run.
• Set up a qualifying pension if required.
• Keep letters/communications and submit ongoing pension data.

Lily’s handles the assessments, set-up, letters, and ongoing submissions.

Your nanny is entitled to paid holiday and certain statutory payments.

Quick actions

• Calculate and confirm annual leave (and how to request it).
• Budget for Statutory Sick Pay (SSP) and maternity where eligible.
• Keep simple, accurate records of leave and sick days.

A quick chat about routines, house rules, allergies, emergencies, and expectations prevents misunderstandings. Plan a light review every 6–12 months to check how things are going for you and for your nanny.

1. Offer letter and signed contract
2. HMRC employer registration
3. Payroll frequency agreed (weekly/fortnightly/monthly)
4. PAYE and NI set up in your payroll system
5. Pension assessment plan
6. Employee starter details (address, NI number, P45 or starter form)
7. Emergency contacts & house guidelines

With Lily’s, setup takes minutes: we register you, collect your nanny’s details, configure PAYE/RTI, assess pensions, and prepare your first run.

• Send hours or salary to your payroll admin
• Review the summary Lily’s provides
• Approve the run
• Pay HMRC and your nanny by the shown dates/amounts
• File or forward the payslip (Lily’s can send directly)

Yes. if you employ them (not self-employed), PAYE still applies above personal allowance.

Usually no, most nanny roles are employed due to how, where and when the work is done. If unsure, ask us to assess.

We can switch you smoothly, no downtime, no missed filings. (Ask about onboarding offers.)

• Dedicated payroll expert (not a call centre)
• HMRC registration, PAYE, RTI, payslips, P45/P60 handled for you
• Pension auto-enrolment set-up and submissions
• Clear reminders of what to pay and when
• Set up in minutes; same-day first payroll possible in many cases

Join families across the UK who’ve handed payroll to Lily’s, so they can focus on home, not HMRC.

Register in minutes or speak to an expert.