Why Most Nannies Are Not Self-Employed in the UK
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Many families looking to hire a nanny hear the same thing:
“Don’t worry, I’m self-employed. You don’t need to do anything.”
It sounds great – no payroll, no admin, no hassle. But here’s the truth:
In almost every case, this is legally wrong.
Nannies who work in your home, follow your schedule, and care for your children under your direction are employees under UK law. If you treat them as self-employed, you take on real financial and legal risks – even if they ask for it.
Legal definition of "Self-Employed"
A self-employed person runs their own business, sets their own hours, chooses their clients, and controls how they work. Think: plumbers, photographers, consultants.
A nanny, on the other hand, typically:
- Works in your home
- Follows your schedule and instructions
- Is supervised and directed by you
According to HMRC’s employment status rules, this clearly makes a nanny an employee, not a self-employed contractor.
What’s the Risk If You Get It Wrong?
Even if the nanny insists they’re self-employed, you’re the one held responsible if HMRC or a court disagrees. You could face:
- Fines, interest, and legal claims
- Backdated income tax and National Insurance
- Missed pension contributions
- Ineligibility for Tax-Free Childcare or other support
- Damage to your trust with the nanny if problems arise
When Can a Nanny Be Self-Employed?
There are rare cases – usually when the nanny:
- Works for multiple families at once
- Sets their own hours
- Offers temporary or specialist services (e.g. night nanny or maternity nurse)
Even then, you should use HMRC’s employment status checker or get a written ruling.
The right way to hire a nanny
If your nanny works in your home, under your direction – they are your employee.
Here's what legal employment looks like:
- Register as an employer with HMRC
- Set up PAYE payroll
- Provide payslips and a written contract
- Pay tax, NI, pension, and holiday pay
For more info read our step-by-step hiring guide
We Handle It All for You
Hiring a nanny legally can feel like a full-time job: Registering with HMRC, calculating tax, running payroll, creating a contract, paying pension contributions, managing holidays…
That’s exactly what we take care of – start to finish.
- Registering with HMRC
- Creating a legal employment contract
- Calculating and paying tax, NI and pension
- Sending payslips and making salary payments
- Tracking holidays, sick days or maternity leave
- Verifying an Enhanced DBS check
- Ensuring valid employer’s liability insurance is in place
- Staying compliant with changing employment laws
You focus on your family. We’ll handle the paperwork.
The Easiest Way to Employ a Nanny Legally
We handle payroll, contracts, tax, pension, and payments – all in one place. Trusted by thousands of UK families.
