Live In VS. Live Out Nanny

A live-out nanny commutes to your home for set hours and is the most common arrangement, offering clear professional boundaries. A live-in nanny lives in your home, providing much more flexibility (e.g., for early starts or babysitting) but involves a significant loss of privacy for your family and the nanny. Legally, live-in nannies have different payroll rules, as you must account for the value of their accommodation.

When you've decided to hire a nanny, the first big question you'll face is: should they be live-in or live-out?

This choice isn't just about cost; it's a decision that will fundamentally shape your family's lifestyle, your daily routine, and the nature of your relationship with your nanny. Both options have significant pros and cons.

Let's break down the key differences to help you decide.

The Live-Out Nanny

A live-out nanny (or "daily nanny") is the most common arrangement in the UK. They travel to your home for their agreed-upon working hours and leave at the end of their shift, just like any other commuter.

Pros

• Clear Boundaries: This is the biggest advantage. When the nanny's shift is over, they go home. Your evenings and weekends are your own, and the line between "employer" and "employee" is very clear.
• Your Privacy is Intact: You don't have to share your kitchen, living room, or any personal space.
• Larger Pool of Candidates: You will almost always have a wider choice of candidates, as you aren't limited to those who are looking for accommodation.
• Simpler Relationship: The relationship is often more straightforward and professional.

Cons

• Less Flexibility: Your nanny's hours are fixed. If you're running late from work, you'll likely be paying overtime. Last-minute babysitting is a separate request, not a given.
• Commuting Issues: You are reliant on your nanny's commute. They can be delayed by traffic or train cancellations.
• Higher Hourly Rate: A live-out nanny's gross salary is typically higher than a live-in nanny's to compensate for their own living and commuting costs.

The Live-In Nanny

A live-in nanny lives in your home as their main residence. You must provide them with their own private, furnished bedroom and, ideally, their own bathroom. You are also expected to provide their meals.

Pros

• Greater Flexibility: This is the number one reason families choose this. Early starts, later finishes, and handling travel schedules are all much easier. Two nights of "babysitting" per week are often included as standard in the contract.
• Potentially Closer Bond: Living together can foster a deeper, more integrated relationship with your children and family.
• No Commute: Your nanny is always on-site, so there are no worries about them being late due to traffic.
• Lower Gross Salary: The nanny's gross salary is typically lower than a live-out nanny's because they are receiving the significant benefit of accommodation and food.

Cons

• Loss of Privacy: This is the biggest drawback. You will be sharing your home with another adult. This impacts your family's private time and is a huge consideration for both you and the nanny.
• Extra Costs: While the salary is lower, your household bills will increase. You are paying for their food, heating, electricity, Wi-Fi, and more.
• Smaller Pool of Candidates: You are limited to nannies who are actively seeking a live-in position.
• The "Always On" Feeling: It can be hard for both you and your nanny to switch off. Clear boundaries in the contract about "on" and "off" time are essential to prevent burnout.

Cost & Legal Differences You Must Know

This is where things get more complex, especially for live-in nannies.

1. The Total Cost

Don't just compare the salaries.

• A live-out nanny has a higher gross salary, and that's your main cost (plus tax, NI, and pension).
• A live-in nanny has a lower gross salary, but you must add the cost of food, utilities, and potentially a car, to get the true total.

Read more: How Much Does a Nanny Cost?

2. The Legal Payroll Rules

Both are your employees, but the payroll is handled differently.

• Live-Out Nanny: Straightforward. You pay their gross salary, and the payroll calculates tax, NI, and pension.
• Live-In Nanny: This is much more complex. You cannot just pay a low "pocket money" salary and count the room as wages. You must pay them at least the National Minimum or Living Wage (NMW) for every hour worked.

To account for the room you provide, the law allows you to deduct a small, fixed "accommodation offset" from their pay. This is a very specific legal calculation that must be done correctly on their payslip.

Learn more: How to Handle Nanny Expenses, Meals, and Accommodation

How to Choose?

• Choose a live-out nanny if: You work predictable hours, value your family's privacy, and want a clear, professional line between work and home.
• Choose a live-in nanny if: You work irregular or very long hours, need a high degree of flexibility, and are genuinely comfortable sharing your home and life with another person.

We Handle the Admin for Both

Whether you choose the straightforward payroll for a live-out nanny or the complex NMW and accommodation offset calculations for a live-in nanny, you are a legal employer.

Our payroll service takes care of everything for you: From registrations and filings to legally compliant payslips and payments. We make sure your setup is 100% correct, whichever option you choose. Fully digital, no paperwork, no stress.