Researching Tax, National Insurance, and Pension requirements for employing caretakers, private chefs, and other domestic workers into your home can be a complicated process. This guide aims to provide necessary information related to obligations and actions employers must know.

Do I need to pay Taxes, and National Insurance for my Caretaker in the UK?

If your domestic worker makes over £96 a week, You, the employer, are obliged by UK law to register as an employer through HM Revenue & Customs (HRMC) and incorporate PAYE into payroll. You mustregister before the first payday to receive employer PAYE reference code.

• If your employee is over 16 years old, and or makes over £242 per week, you must pay the National Insurance deduction (rates and thresholds for previous tax years found on gov.uk). A National Insurance Number is needed to ensure taxes and contributions are made against your name only.

• You are responsible for paying the HMRC every month, of what´s reported on the previous months Full Payment Submission (FPS), by the 22nd of each month. You must also send an Employer Payment Summary (EPS), typically by the 19th of each month.

What is Employers Liability Insurance, and do I need it for my housekeeper?

As an employer, EL insurance for any domestic worker is mandated by law; your policy must cover at least £5 Million and must come from a licensed insurer. If not insured, you may be fined £2,500 for each day without coverage. You may also be fined £1,000 if you refuse to display EL certificate to any inspector.

What else do I need to know when hiring domestically?

Even if your employee does not meet legal limit for PAYE and NI requirements, it is still important to record employees wage for statutory pay purposes (maternity pay, sick pay, etc).

• It is illegal to not declare PAYE, and NI amount, or to declare an incorrect amount. Consequences include repaying unpaid amount with included interest, fines, and possible criminal investigation that could result in imprisonment.

For more information regarding tax information, service inquiries, and client vetting, visit our website. We would love to hear back from you. And remember, for employees working more than 15 hours, we Nomenial become the employers of the worker. It is a no stress, Hands-off preferred service that prioritizes the emotional well-being of our clients.

Works Cited

Government Digital Service. “Employing Someone to Work in Your Home.” GOV.UK