The UK’s Trusted Nanny Payroll & Tax Specialists
From payslips to pensions, we handle every detail of your nanny’s payroll, quickly, clearly, and with care. You look after your family. We’ll take care of the admin.
Use our free nanny tax calculator to estimate costs
What is Nanny Payroll And Why do you need it?
Nanny payroll is basically the legit way to pay your nanny, it means handling taxes, pay slips, and government filings like a real employer instead of paying cash under the table.
It keeps you compliant with the law, protects both you and your nanny, and shows you’re a responsible employer who respects their work. Beyond avoiding fines or audits, payroll ensures your nanny gets proper benefits, social security contributions, and employment records that actually matter.
Plus, automating payroll saves you time, stress, and messy paperwork. Bottom line: if you trust someone with your kids, pay them right — nanny matters makes it simple, legal, and stress-free.
Nanny payroll
- Unlimited advice
- Responsive payroll team
- Contract templates
- From One annual fee of £260*
- HMRC registration
- No hidden charges
Nanny Pensions
- Submit pension declarations
- Apply calculations to payslips
- Set up the pension scheme with NEST
- Manage communications
- Manage the payments
- From £60 per annum*
Nanny Pay Calculator 2026
Trying to work out nanny pay and employer costs? Our free nanny pay calculator (UK) shows exactly how much a nanny will take home and the total cost to you as an employer. Enter a pay figure to calculate nanny take-home pay, income tax, National Insurance, and employer costs in one place. Whether you’re checking gross pay, net pay, or running a nanny pay tax calculation, this tool gives you a clear, compliant breakdown no guesswork, no jargon.
Why choose Nanny Matters For Your Payroll Needs?
We’re not a call centre.
You won’t be stuck in voice-menu limbo. We aim to pick up in 3 rings or less, always with a real human on the line.
Fast email response.
We aim to reply within 4 hours, and never longer than 1 working day.
Digital-forward, always.
We’re building more self-serve tools, dashboard features, and smart automations to make your life easier.
Super quick onboarding.
Once you register, we can get things moving in just one working day.
Simplifying Nanny Payroll and Tax for Parents Since 2002
NannyMatters have been providing professional nanny payroll services and expert tax advice to parents since 2002. For one affordable annual fee, we take the stress out of becoming an employer. Our team handles your nanny tax responsibilities, pension setup, employment contracts, and HMRC paperwork, so you don’t have to.
Our website guides you through everything involved in employing a nanny, including contracts, tax, pensions, holidays, sick pay, and nanny sharing. Whether you’re hiring your first nanny or switching payroll providers, we’ll make the process simple.
Got more complex needs? Check out our Expert Help section for advice on holiday pay, term-time contracts, nanny shares, and childcare vouchers.
Confused about nanny pensions? Visit our Pensions page to learn what’s required and when it applies.
Not sure about costs? Use our Nanny Tax Calculator below for a quick estimate.
Based in Bristol, NannyMatters proudly supports families across England, Scotland, Wales, and Northern Ireland with trusted, personal service.
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Frequently asked questions
Do I need to register with HMRC when I hire a nanny?
Yes, and you need to do it before their first payday. When you employ a nanny, you become their employer in the eyes of the law. That means registering as an employer with HMRC and setting up PAYE to handle tax and National Insurance. We take care of the registration for you as part of your setup.
What is the difference between gross pay and net pay?
Gross pay is what you agree to pay before tax and National Insurance are deducted. Net pay is what your nanny or carer actually receives in their bank account. Always agree a gross rate – never net. With a net agreement, you take on an open-ended tax liability that can cost you far more than expected if your employee’s tax code changes.
How much does nanny payroll cost?
Our annual fee starts from £260 and covers everything – HMRC registration, monthly payslips, tax calculations, and ongoing support. There are no hidden charges and no per-payslip fees. If pension management is needed, that’s available as an optional add-on from £60 per year.
Can I pay my nanny cash in hand?
Cash payments are legal, but only if they’re properly processed through payroll with the correct tax and National Insurance deducted and reported to HMRC. Paying cash without declaring it is illegal for both employer and employee. If you’re unsure about your current setup, get in touch and we can help you sort it out.
What happens if my nanny is self-employed?
In almost all cases, a nanny cannot legally be self-employed. HMRC is clear on this: if someone works regular hours in your home, follows your instructions, and uses your equipment, they are an employee. Treating them as self-employed to avoid payroll is a risk to both parties and could result in penalties. We can help you get set up correctly.
Do you cover the whole of the UK?
Yes. We support families across England, Scotland, Wales, and Northern Ireland. Everything is managed remotely so there’s no need for us to be local to you.
How quickly can you get us set up?
Once you register, we can get your payroll moving within one working day. We’ll confirm what we need from you and take it from there.
What is nanny payroll and do I really need it?
Nanny payroll is the legal process of paying your nanny as an employee – handling income tax, National Insurance, HMRC registration, and monthly payslips. If you employ a nanny in the UK, you’re legally required to run payroll. Paying cash without declaring it isn’t a grey area; it’s against the law and can result in fines for both you and your nanny.
How does nanny tax work?
Nanny tax covers the income tax and National Insurance contributions that need to be deducted from your nanny’s wages each month, plus the employer’s National Insurance you pay on top. The amounts depend on their salary and tax code. We calculate everything for you and tell you exactly what to pay HMRC and when – you never have to work it out yourself.
What does a nanny payroll service actually do?
A nanny payroll service handles all the employment admin that comes with hiring a nanny. That includes registering you as an employer with HMRC, calculating tax and National Insurance, producing monthly payslips, submitting payroll data to HMRC on or before each payday, and advising you on things like sick pay, maternity, and pension. Essentially, it means you stay compliant without having to understand the rules yourself.
Can I sort nanny tax myself without a payroll service?
Technically yes, but most parents find it more complicated than expected. You need to register as an employer, submit RTI reports to HMRC every payday, calculate the right deductions, manage tax code changes, and handle anything that comes up mid-year like sick pay or maternity. One mistake can mean penalties or an unexpected tax bill. Most families find the cost of a payroll service – from £260 a year – is well worth avoiding that stress.
What is the difference between nanny payroll and a nanny agency?
A nanny agency helps you find a nanny. A nanny payroll service helps you pay them correctly once they start. The two are completely separate. Many families use an agency to recruit and then come to us to handle the payroll and tax side. Some find their nanny independently and come straight to us – either way, we can get you set up.
