Household & Domestic Staff Payroll

Payroll For Housekeepers, PAs, Gardeners, Chefs And Other Household Employees

The moment you employ someone directly in your home, whether that's a housekeeper, a personal assistant, a gardener, a driver or a private chef, you become their employer in the eyes of the law. That brings PAYE, tax, National Insurance and pension obligations with it, on top of everything else you're already managing. We handle the payroll side for households employing any kind of domestic or private staff, not just nannies.

5 Steps To Get Household Payroll Right

Whatever role you're employing for, the same five steps apply. Here's what to work through.

Step 1

Agree Pay And Hours

Settle on a gross salary or hourly rate, weekly hours, and how often you'll pay. Always agree a gross figure, not a net one, we explain why further down the page.

Step 2

Put A Contract In Place

A written employment contract protects you and your employee. It should cover duties, hours, pay, holiday entitlement, notice periods and sick pay. We provide template contracts to registered clients.

Step 3

Understand your legal obligations

Register with HMRC, deduct the right tax and National Insurance, and submit payroll information on or before each pay day. We take care of every step on your behalf.

Step 4

Choose A Household Payroll Provider

A good provider handles HMRC registration, produces monthly payslips, and deals with anything that comes up. Our annual fee starts from £260, with no hidden charges.

Step 5

Set Up Payments And Get Into A Routine

We'll confirm the exact net figure to pay each month, so all you need to do is transfer it.

Who This Covers

Any role employed directly in a private household falls under the same PAYE rules, regardless of job title. That includes:

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  • Housekeepers and cleaners employed directly (not through an agency or as self-employed contractors)
  • Personal assistants and household managers
  • Gardeners and groundskeepers employed on a regular basis
  • Private chefs and cooks
  • Drivers and chauffeurs
  • Estate and property staff

If you’re not sure whether a role you’re setting up counts as employment or genuine self-employment, that’s one of the first things we’ll help you work through, because getting it wrong in either direction creates problems later.

Why You Should Always Agree a Gross Rate

If you agree a net rate with any household employee, either you or they could lose out significantly.

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A net rate means you, as the employer, cover the tax and National Insurance on top, no matter how high it turns out to be, including tax that arises from a period before your employee even started working for you. It also means your employee misses out on tax refunds and any increase to their personal tax-free allowance over time.

Always negotiate a gross rate. We’ll show you exactly what your employee will take home, or you can use our free pay calculator to work it out.

Why a Written Contract Is Important

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A clear employment contract prevents disputes before they start. It sets out exactly what’s expected on both sides, pay, hours, duties, holidays and notice. Every client who registers with us gets access to a template contract, so you’re not starting from a blank page.

What You Are Responsible for as an Employer

Employing household staff means taking on a set of legal obligations. Here’s what we handle for you.

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In a hurry? Register now and we’ll have everything moving by the next working day.

Registering with HMRC

You need to register as an employer with HMRC before your employee’s first payday. We do this for you as part of setup.

Monthly PAYE deductions and reporting

Each time you pay your employee, the correct income tax and employee National Insurance need deducting and reporting to HMRC through RTI. We handle this automatically and send a clear summary of exactly what to pay and when.

Employment Rights

Your employee is entitled to paid holiday, the National Minimum or Living Wage, and Statutory Sick Pay if eligible. We’ll walk you through all of these when you register.

Pension auto-enrolment

If your employee 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 let you know if and when this applies.

What to Look for in a Carer Payroll Provider

Most payroll providers will cover the basics, payslips and telling you what to pay HMRC, but many add charges further down the line that weren’t clear at the start. Before you sign up with anyone, make sure you know exactly what’s included.

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Be wary of providers who try to sell add-ons you don’t need, such as additional insurance. In most cases your existing household insurer will cover you at no extra cost, so check there first.

Our annual subscription starts from £260 and covers monthly payroll for as many household employees as you take on during the year, with no hidden charges.

What's Included and What Costs Extra

No extra charge for

  • Paying a second employee alongside, or paying a temp when covering sick or annual leave
  • Setting up or closing down your PAYE scheme
  • Claiming tax refunds, or funding for statutory pay
  • Backdated payroll problems

Additional charges

  • Weekly payroll: an additional £70 a year. We want to discourage weekly pay because of the extra work it creates, with much tighter deadlines for notifying HMRC of any changes. If you want weekly, we can do it.
  • Our optional pension management service: from £90 a year.

How To Pay Your Household Staff

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.

Monthly Pay

Paying monthly in arrears is the simplest and most common arrangement. We can base it on a fixed monthly salary or on actual hours worked.

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Setting a regular payday

We recommend a consistent date, usually the last working day of the month or a fixed date like the 28th. Consistency makes things easier for everyone.

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Paying by bank transfer

We’ll confirm the exact net figure each month and you pay your employee directly. You stay in full control of your own bank account at all times.

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Cash in Hand

Cash is legal as long as it’s processed through payroll. Paying cash without declaring it to HMRC is against the law. Contact us for confidential advice if you’re unsure about your current arrangement.

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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.

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Get in touch with us

Want to talk? No matter what’s on your mind, we would love to hear from you. Give us a call, email or complete our online registration form.

Office and New Enquiries

01275 464425
(Monday to Friday 9am to 5pm)
enquiries@nannymatters.co.uk
(Allow next working day for a response)
Nanny Matters
West End House
Blackfriars Road
Nailsea
Bristol
BS48 4DJ
NannyMatters is owned and operated by Macfarlane Hull Ltd, Registered in England No. 8457251