Your complete guide to employing a nanny legally in the UK — including an interactive tax calculator updated for the 2025/26 tax year.
Register with HMRC as an employer before your nanny starts. You must set up PAYE (Pay As You Earn) even if your nanny earns below the tax threshold — this is a legal requirement for all domestic employers.
Deduct Income Tax and National Insurance (employee Class 1) from your nanny's wages each pay period, then pay employer's National Insurance (15% above £5,000 secondary threshold in 2025/26) directly to HMRC.
Auto-enrol your nanny into a workplace pension if they are aged 22–State Pension age and earn over £10,000 per year. Minimum employer contribution is 3% of qualifying earnings; employee contributes at least 5%.
Provide itemised payslips showing gross pay, each deduction, and net pay. Keep accurate employment records for at least 3 years — HMRC may request these during a compliance check.
Enter a gross salary to see take-home pay and your total employer cost — updated for the 2025/26 tax year.
| Personal Allowance | £12,570 — 0% |
| Basic Rate | £12,571–£50,270 — 20% |
| Higher Rate | £50,271–£125,140 — 40% |
| Additional Rate | Over £125,140 — 45% |
| All thresholds frozen until April 2028. Personal allowance tapers above £100,000. | |
| Employee NI (Class 1) | |
| Below £12,570 | 0% |
| £12,570–£50,270 | 8% ↓ from 12% |
| Above £50,270 | 2% |
| Employer NI (Class 1) ↑ from 13.8% | |
| Above £5,000 | 15% |
| Employer secondary threshold reduced from £9,100 to £5,000 in 2025/26. | |
| Eligible age range | 22 – State Pension age |
| Earnings threshold | £10,000/year |
| Employer contribution | Minimum 3% |
| Employee contribution | Minimum 5% |
| Total minimum | 8% |
| Contributions based on qualifying earnings (£6,240–£50,270). Nannies may opt out but must be re-enrolled every 3 years. | |
| Plan 1 (before Sept 2012) | |
| Threshold | £26,065/year ↑ updated |
| Rate | 9% |
| Plan 2 (Sept 2012–July 2023) | |
| Threshold | £28,470/year ↑ updated |
| Rate | 9% |
| Plan 5 (from Aug 2023) threshold is £25,000 until April 2027. Postgraduate threshold: £21,000 at 6%. | |
Let us help you find a perfectly suited, fully vetted nanny — and guide you through every step of the employment process.
The UK's original nanny payroll specialists — providing comprehensive payroll services for domestic employers since 1993.
An established payroll company offering friendly, professional service for all domestic employers — simple to use and competitively priced.
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