Managing the tax and payroll responsibilities for domestic workers can be complex. Nannywage Ltd simplifies this process, offering comprehensive services to ensure full compliance with HMRC and The Pension Regulator. Here’s an essential guide on Nanny Tax and how Nannywage Ltd can help you.

What is Nanny Tax?

Nanny tax encompasses the tax obligations and responsibilities that come with employing nannies, housekeepers, carers, or other domestic workers. These include managing payroll, calculating taxes, and ensuring adherence to employment laws and regulations.

Comprehensive Nanny Payroll Services

Nannywage Ltd provides a complete payroll service, covering all aspects of payroll management without extra costs. Key services include:

• PAYE Registration: Registering employers for a PAYE small employer scheme with HMRC.

• Employment Contracts: Producing contracts of employment for you and your employee if required.

• Wageslips: Printing and sending hard copy wageslips, processing weekly wageslips for each Friday and monthly wageslips for the last Friday of the month.

• Telephone Support: Offering a help desk with payroll and employment law advice.

• Tax Summaries: Producing quarterly summaries of tax and National Insurance contributions due, with payment instructions.

Managing Employee Changes

Nannywage Ltd handles all changes related to your employees, ensuring smooth transitions and compliance:

• New Employees: Processing new nannies, with or without a P45.

• Leaving Employees: Processing leaving nannies and producing a P45 for them.

• Statutory Payments: Advising on and processing statutory sick pay and statutory maternity pay with pre-funded reclaim.

• Salary Adjustments: Processing salary increases, overtime, or bonus payments, and calculating the corresponding tax.

Liaison with HMRC

Nannywage Ltd acts as a liaison with HMRC on your behalf for various issues, including:

• Tax Over/Underpayments: Handling discrepancies in tax payments.

• Tax Code Changes: Managing any changes to tax codes.

• Student Loans and Attachments: Making deductions for student loans and any attachments of earnings as instructed by HMRC.

• Year-End Declarations: Filing end-of-year declarations, including processing your P60.

Postponing Workplace Pension Compliance

Employers can postpone workplace pension compliance for up to three tax months, allowing time to assess the suitability of a new employee before committing to pension contributions. During this period, Nannywage Ltd ensures you are prepared to comply once the postponement ends.

Declaration of Compliance

The Pension Regulator mandates all employers to complete a Declaration of Compliance, regardless of employee eligibility. Nannywage Ltd guarantees to complete this declaration free of charge, ensuring you remain compliant and avoid hefty fines. This service is crucial for maintaining legal standing and avoiding penalties.

Insurance Requirements

Employers must have employer liability insurance to cover claims in case of employee injury due to workplace conditions. Nannywage Ltd provides advice on checking home contents insurance to see if employer liability cover is included, potentially saving you significant costs.

Public Liability Insurance

Nannies should have public liability insurance to cover potential damages to your property. Nannywage Ltd advises that employees search for appropriate insurance plans online to ensure they are covered for incidents like property damage.

Summary

Managing nanny tax and payroll can be challenging, but Nannywage Ltd offers a comprehensive solution. From PAYE registration and employment contracts to ongoing HMRC liaison and workplace pension compliance, Nannywage Ltd ensures you meet all legal requirements. Their services provide peace of mind, allowing you to focus on the well-being of your household and employees.

Nannywage Ltd simplifies the complex landscape of nanny tax, providing essential support and ensuring compliance with all relevant regulations. Their extensive range of services ensures that all aspects of nanny employment are managed efficiently and effectively.