The government’s pensions initiative, known as Auto Enrolment, requires all UK employers to automatically enrol any qualifying employees into a workplace pension scheme and make contributions towards that pension. As a UK nanny employer, you will need to enrol your nanny into a pension scheme if he or she qualifies.
Does my nanny qualify for a workplace pension?
If your nanny is aged between 22 years old and the State Pension Age and they earn £10,000 or above per year, then they do qualify for a workplace pension.
What will happen if I don’t offer my nanny a pension scheme?
If your nanny is eligible for a pension scheme and you fail to enrol them into one, or if you fail to pay pension contributions, you can be fined by The Pensions Regulator.
My nanny doesn’t qualify but still wants a pension, what should I do?
Your nanny still has the right to ‘opt in’ and join a pension scheme even if they do not qualify for a workplace pension. It is your responsibility to enrol them into a suitable scheme.
My nanny qualifies for a pension but doesn’t want one, what do I need to do?
It is a legal requirement for you to enrol your nanny into a pension scheme if they qualify for it, even if he or she doesn’t want one. Once your nanny is enrolled into a pension scheme, they can then choose to ‘opt out’ or ‘cease membership’ of the scheme.
If this is the first time you’ve heard about your Auto Enrolment and nanny employer pension duties, don’t worry! Nannytax provides a fully managed workplace pension service for their clients which means the Nannytax team of pension specialists can take this off your hands!
This blog was written by Nannytax, the award-winning and UK leading nanny payroll experts with 30 years experience.
Discover more about Nannytax here.