How to Register as a Nanny Employer with HMRC

Most parents don’t realise that the moment they hire a nanny, they become an employer in the eyes of the law. That means you need to register as a nanny employer with HMRC before your nanny’s first payday, and there are a few things to get in order before you can do that.

It sounds daunting, but the actual process is pretty straightforward once you know the steps. This guide walks you through exactly what to do, what you’ll need, and what happens if you miss the deadline.

Why do I need to register with HMRC?

When you employ a nanny, you’re taking on a proper employee, not a self-employed contractor. This is a common point of confusion, but HMRC is clear on it: a nanny who works regular hours in your home, uses your equipment, and takes direction from you is an employee. You cannot legally pay them as if they were self-employed.

As their employer, you’re responsible for deducting income tax and National Insurance from their wages, paying employer’s National Insurance on top, and reporting everything to HMRC through a system called PAYE (Pay As You Earn). To do any of that, you first need to register.

When do I need to register?

You need to register with HMRC before your nanny’s first payday. HMRC asks you to do this no earlier than two months before they start work, so there’s no point registering too far in advance.

If you miss the deadline and your nanny has already been paid without a proper PAYE setup in place, you could face penalties. It’s one of those things that’s much easier to sort out at the start than to unpick later.

What you need before you start

Before you can register, make sure you have the following to hand:

Your Government Gateway account. You’ll need one to register online. If you don’t have one, you can create it at the same time.

Your nanny’s start date. You’ll be asked for this during the registration process.

Your nanny’s personal details. Full name, date of birth, National Insurance number, and home address.

Their agreed pay details. Whether that’s gross or net, and how often they’ll be paid (weekly or monthly).

One thing worth noting: always agree a gross pay figure with your nanny, not a net one. Net arrangements can become very complicated when tax codes change or a second job is involved, and they can leave you exposed to unexpected costs. Gross is cleaner and much easier to manage.

How to register as a nanny employer, step by step

Here’s what the process looks like in practice:

1. Go to HMRC’s employer registration page and sign in with your Government Gateway credentials, or create an account if you don’t have one.

2. Register as a new employer. Select that you’re employing someone for the first time. You’ll answer a few questions about the type of employment.

3. Receive your PAYE reference numbers. HMRC will issue you an Employer PAYE Reference and an Accounts Office Reference. These typically arrive in the post within five working days, though it can occasionally take a little longer.

4. Set up payroll software or use a payroll service. Once you have your reference numbers, you can start processing payroll. You’ll need to submit a Full Payment Submission (FPS) to HMRC each time you pay your nanny.

5. Make your first payment. Deduct the correct income tax and National Insurance, pay your nanny their net wage, and report it to HMRC through your payroll software on or before payday.

What about your nanny’s pension?

Pension is a separate obligation from PAYE, but it often catches parents off guard. If your nanny is aged between 22 and State Pension age and earns more than the current earnings trigger, you’re legally required to automatically enrol them into a workplace pension scheme.

You’ll need to declare compliance with The Pensions Regulator after setting this up. It’s not complicated, but it is something you need to do within a few months of becoming an employer, so it’s worth getting it sorted early rather than leaving it.

Do I have to manage all of this myself?

No, and most parents don’t. A nanny payroll service will handle the HMRC registration on your behalf, set up your PAYE, process your nanny’s payslips each month, manage pension enrolment, and deal with anything else that comes up along the way. You stay compliant without having to think about it.

If you’re looking to register as a nanny employer with HMRC and would rather hand it over to someone who does this every day, that’s exactly what we’re here for. Get in touch and we’ll get everything set up for you.

The short version

Registering as a nanny employer with HMRC is a legal requirement, and it needs to happen before your nanny’s first payday. The process itself isn’t complicated, but it needs to be done in the right order, and a few common mistakes (like agreeing a net pay rate, or forgetting about pension) can cause headaches down the line.

If you’d rather get it right from day one without wading through HMRC guidance yourself, we can take care of the whole thing for you – get in touch with the team today.