Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Childcare is not child's play

28 July 2015 / Alison Haynes
Issue: 4511 / Categories: Comment & Analysis , Employees
haynes_0

The tax issues when employing a nanny do not stop with the tax and National Insurance on her salary

KEY POINTS

  • Secondary National Insurance contributions are due on a nanny’s pay.
  • Tax arising on the provision or use of a car for the carer.
  • Problems with paying a net rather than a gross salary.
  • Remember other benefits such as accommodation gym membership and health insurance.

Various forms of childcare are available to parents in the UK. Nurseries and childminders involve contractual arrangements with third parties but in the case of nannies the parents are the employer which may give rise to unexpected complexities.

The difference between a self-employed carer and an employed one will often be clear but sometimes the position will not be obvious for example when a family member is providing childcare or when a childminder starts to work exclusively with one family and...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon