There are many things to think about when you employ someone. When hiring a nanny you must employ them – they should not be employed through a company you may own. Please note: nannies may be self employed on some occasions but this is only allowed if they are working for more than one family on a regular basis.
Things to remember:
It is always best to agree a gross salary. Many nannies like to talk in net pay but please remember you will have to pay tax and NI on top of the net rate agreed. Other deductions from a nannies salary may include student loan repayments or pension contributions – if you have agreed a net wage, you are agreeing to make these payments over and above any other payments.
You will also need to pay employers national insurance.
There is now a pension scheme for everyone employing staff. For more information on the new pension scheme please see: http://www.parentalchoice.co.uk/nannies/employ-a-nanny/pensions-nannies
Attached are 2 fact sheets that may be helpful for you when employing a nanny.