Nanny Payslips: This must be included

By law, you must provide your nanny with a payslip on or before each payday. This is a legal requirement as your nanny is your employee. The payslip must clearly show the gross pay, all itemised deductions (like tax, NI, and pension), and the final net pay. Keeping this clear and accurate is a core part of being a fair and legal employer.

When you hire a nanny, you become an employer, and one of your key legal duties is running a payroll. A payslip isn't just a "nice to have" or a simple receipt—it's a detailed legal document that your nanny is entitled to.

Acas and UK law are very clear: every employee must receive an "itemised pay statement." This protects both you and your nanny. It provides a transparent record of their earnings and proves you are correctly handling their tax, which is vital to avoid the risks of paying cash in hand.

Here’s a simple breakdown of what must be on every single payslip.

The 3 Legal Must-Haves

According to GOV.UK, every payslip must, by law, show these three key figures:

1. Gross Pay: This is the total, full amount your nanny has earned before any deductions are made. This figure is the one you agreed upon in their contract.
2. Itemised Deductions: You must list every single deduction taken from the gross pay. You can't just show a single 'deductions' total. These must be broken down.
3. Net Pay: This is the final "take-home" amount that will be paid into your nanny's bank account after all deductions have been subtracted.

If your nanny's pay varies based on the hours they work (e.g., they get paid for overtime), you must also show the number of hours they are being paid for on the payslip.

The Itemised Deductions: What You'll See

The "itemised deductions" section is the most detailed part of the payslip. For a nanny, this will almost always include:

• Income Tax (PAYE): This is the tax you deduct on their behalf and pay to HMRC.
• National Insurance (NI): This is the employee's NI contribution (you will pay a separate Employer's NI contribution on top).
• Pension Contributions: If your nanny is enrolled in a workplace pension, their employee contribution will be shown here.
• Student Loan Repayments: If applicable, these are also collected through payroll.

Other Nanny-Specific Adjustments

Your payslip will also show other adjustments that might not be "deductions" but are key to the calculation:

• Expenses: If you are reimbursing your nanny for work-related expenses (like activity fees or mileage), these can be shown on the payslip as a non-taxable addition.
• Statutory Pay: If your nanny is on leave, their pay will be shown here (e.g., Statutory Sick Pay or Maternity Pay).
• Accommodation Offset: For live-in nannies, this is crucial. You must use the government's "accommodation offset" figure (currently £9.99 per day as of late 2024, rising in April 2025) to ensure you are meeting National Minimum Wage laws. This calculation will be reflected in their payroll.

What Else Should Be on the Payslip?

While not a strict legal "must-have" in the same way, a good, compliant payslip will also include:

• Your (Employer) Name
• Your Nanny's (Employee) Name
• National Insurance Number
• Tax Code: This shows HMRC how much tax to deduct.
• Pay Period: (e.g., "Month 1" or "April 2025")
• Pay Rate: (e.g., their annual salary or hourly rate)
• Totals: Year-to-date figures for pay and tax.

Why is This So Important?

A clear payslip is your best friend as an employer.

• It's Proof of Payment: It's a legal record that you are paying your nanny correctly.
• It's Proof of Compliance: It shows you are paying the right tax and NI to HMRC.
• It's a Legal Document: Your nanny will need their payslips as proof of income to apply for a loan, a mortgage, or a rental property.
• It Builds Trust: It shows your nanny that you are a professional, fair, and transparent employer.

Agreeing on a Gross Salary is the first step. Providing a legal payslip is the vital second step that makes it all work.

Make Payslips Simple

Calculating gross pay, tax codes, NI, pension deductions, and accommodation offsets every month is complex, and the penalties for getting it wrong are high.

That's exactly what Quinn was built to solve.

Our payroll service takes care of everything for you: From registrations and filings to providing legally compliant payslips for your nanny every single payday. Fully digital, no paperwork, no stress.