Temporary Nanny Payroll

If you pay someone to look after your children in your home and direct how they do it, they are almost certainly an employee, even if the job only lasts a few weeks.

Families sometimes assume that a short contract, or a nanny who also works for other families, means the nanny can be self-employed or paid cash in hand. HMRC doesn’t see it that way. The usual test is whether the person works in your home, to your instructions, rather than running an independent business of their own.

That means registering as an employer, deducting income tax and National Insurance where earnings are above the thresholds, and keeping payroll records. If your temp earns very little, different rules can apply, so it’s worth checking rather than guessing. We’ll tell you where your arrangement sits.

For the background, read why your nanny can’t be self-employed.

Temporary nannies build up paid holiday from their first day, just like permanent staff. Because a short contract rarely leaves time to take it as leave, it is usually paid out in the final payslip.

We work out what’s owed when the contract ends. For more on how entitlement works, see our guide to nannies and holidays.