Au Pair Payroll Services UK
PAYE, Tax And Compliance Support For Families Hosting An Au Pair
5 Steps To Get Your Au Pair's Pay Right
Step 1
Agree Pay And Hours
Step 2
Put An Au Pair Agreement In Place
Step 3
Understand Your Legal Obligations
Step 4
Choose An Au Pair Payroll Provider
Step 5
Set Up Payments
Do Au Pairs Actually Need Payroll?
For years, most host families assumed an au pair was different to a nanny: pocket money, not a wage, and no need for PAYE. That assumption isn’t safe any more.
The family worker exemption that used to keep au pairs outside the National Minimum Wage has narrowed significantly following a series of employment tribunal cases involving live-in domestic workers. If your au pair has set hours, defined childcare or household duties, and doesn’t live as a genuine equal member of the family sharing meals and leisure time, HMRC and an employment tribunal are increasingly likely to view the arrangement as employment. That means the National Minimum Wage and PAYE apply in the normal way.
That doesn’t mean every au pair arrangement needs a full payroll service. But if pocket money is above pocket-money levels, your au pair works structured hours, or you’re not confident your arrangement meets the narrow family worker test, running it through PAYE properly protects you from backdated tax and minimum wage claims further down the line. If you’re not sure which side of the line your arrangement falls on, that’s exactly the kind of question we help host families with every day.
Always Agree Pocket Money As A Gross Figure
Register NowIf your au pair arrangement is treated as employment, the same rule that applies to nannies applies here: agree the pay in gross terms, not net.
A gross rate is the amount before any tax and National Insurance are deducted. If you agree a net figure instead, either you or your au pair could lose out. The employer ends up covering whatever tax and NI arise on top, no matter how much that turns out to be, and the au pair misses out on the benefit of tax refunds or increases to their personal tax-free allowance.
Once we know the hours and duties involved, we’ll tell you exactly what a compliant gross rate looks like for your arrangement, and what your au pair will actually receive.
Why A Written Au Pair Agreement Matters
Register NowA clear written agreement is good practice for every au pair placement, whether or not the arrangement ends up inside PAYE. It sets out hours, duties, days off, room and board, and pocket money in one place, so both sides know what was agreed from day one.
If your arrangement is treated as employment, a written agreement becomes your first line of evidence with HMRC or in a dispute. We provide a template agreement to every registered client at no extra charge.
What You're Responsible For As A Host Family
Hosting an au pair on anything more than genuine pocket money and light duties brings a set of legal obligations with it. Here’s what we handle for you.
Registering With HMRC
If your arrangement is employment, you need to register as an employer with HMRC before your au pair’s first payday. We do this for you as part of setup.
Monthly PAYE Deductions And Reporting
Each time you pay your au pair, the correct income tax and employee National Insurance need deducting and reporting to HMRC through RTI. We handle this automatically and tell you exactly what to pay and when.
National Minimum Wage Compliance
We’ll check the hours and pay you’ve agreed against the current National Minimum Wage bands for your au pair’s age, so you’re not caught out by a rate that looked fine as “pocket money” but falls short as a wage.
Pension Auto-Enrolment
If your au pair earns above the threshold and meets the age criteria, you’re legally required to enrol them in a workplace pension within three months of them starting. We’ll tell you if and when this applies.
Choosing An Au Pair Payroll Provider
Most payroll providers are built around nannies and don’t think about the specifics of an au pair arrangement, room and board, pocket money framing, term-time gaps, and typically weekly rather than monthly pay. Make sure whoever you choose actually understands the difference.
Our annual subscription starts from £260 and covers monthly payroll for the year, regardless of how many changes or how many au pairs you host during that period.
If your au pair earns over £10,000 a year, pension auto-enrolment applies at some point. You can choose your own pension provider and deal with them directly at no extra cost from us, or use our fully managed NEST pension service for £60 a year and we handle everything.
What's Included and What Costs Extra
No extra charge for
- Hosting a second au pair, or covering a gap between placements
- Setting up or closing down your PAYE scheme
- Claiming tax refunds
- Backdated payroll problems
Additional charges
- Weekly payroll: an additional £70 a year. Weekly pocket money is common with au pairs, so this is often worth budgeting for from the start rather than trying to move to monthly pay.
- Our optional pension management service: from £90 a year.
How To Pay Your Au Pair
Paying on time every month is one of your core responsibilities as an employer. Here’s how most families manage it, and how we support each approach.
Weekly Pocket Money
Weekly is the norm for au pairs. We can run weekly payroll for the additional £70 a year fee mentioned above, or work out a monthly equivalent if you’d both rather move to monthly pay.
Setting A Regular Pay Day
Whichever frequency you choose, pick a consistent day, for example every Friday or the last working day of the month. Consistency makes budgeting easier for both sides.
Paying By Bank Transfer
We’ll confirm the exact figure each pay period and you pay your au pair directly. You stay in full control of your own bank account throughout.
Cash in Hand
Cash is legal as long as it’s processed through payroll and declared to HMRC. Paying cash without declaring it is against the law. Contact us for confidential advice if you’re unsure about your current setup.
Tax-Free Childcare
If your carer is registered with the relevant authority, you can use your Tax-Free Childcare account to pay their wages and HMRC directly. Ask us for our free step-by-step helpsheet.
Get in touch with us
Office and New Enquiries
(Monday to Friday 9am to 5pm)
(Allow next working day for a response)
West End House
Blackfriars Road
Nailsea
Bristol
BS48 4DJ
