Paying employer's NI for a nanny

dekari

Hi, I employ my neighbour as a part-time nanny to my pre-school children. I currently go through an intermediary nanny payroll company to pay her on a monthly basis - she pays no NI or tax on her monthly wages (she is 65 and earns approximately £10k per year) - and i will need to pay another £200 annual subscription fee for their services from september. As I pay her the same each month and they only provide a payslip and a reminder about paying my employer's NI, I wondered if I could move to just paying her the set amount I pay each month and pay hmrc my NI contribution directly, without having to do anything else? Would I need to contact hmrc to set something up to facilitate this?
Any thoughts on this would be most welcome!

AbbieCadabra

i'm not familiar with this type of set up so apologies if i've got this wrong, but i don't understand how they can give YOU a reminder to pay employers NI, aren't they her employer & you simply pay the agency for her services?

if you have to pay employer NI, then surely you are an employer & should be reporting wages/payroll through paye to HMRC? info here

might be some answers here, nannytax who run a nanny payroll service.

dekari

It's not an agency - just a payroll company. I am the employer. They forward my employer's NI bill from hmrc, which I then pay. That hmrc link is a great help. Thank you!

antrobus

dekari wrote: »

... Would I need to contact hmrc to set something up to facilitate this?
Any thoughts on this would be most welcome!

You'd need to sign up for the Gateway and download Basic PAYE Tools to run your own payrol and make RTI submissions to HMRC.

Icequeen99

I run my own payroll for carers I employ using the HMRC basic tools, it is fairly straightforward to do it yourself if it is just one person. You should find plenty of guidance online.

I use this site to produce payslips https://www.disabilitytaxguide.org.uk as it has a free payslip tool which I use with the HMRC basic tool.

IQ