Skip to content

How Does the National Minimum Wage Apply to Nannies?

2019 January 14

Our recommended partners at www.PayrollForNannies.co.uk  provide payroll advice for parents and have created this content.

Calling all nannies and parents who employ nannies, do you know how the national minimum wage affects you? Keep reading to find out.

If you’re a parent employing a nanny, you must comply with the national minimum wage. If you don’t, you could end up in an Employment Tribunal or be reported to HMRC and face a fine of up to £20,000.

The current hourly wage for the tax year 2018/19 is as follows:

Did you know that if you’re a nanny who lives in the family home and not in separate accommodation provided by the employer, then the national minimum wage does not apply?

For live-in nannies, there is a daily accommodation offset rate of £7 per day or £49 a week. These rates are set every April so it’s important to keep up to date with any new legislation.

However, if your employer has provided accommodation somewhere other than the family home, this will need to be declared as a ‘benefit in kind’ on your tax return.

National Minimum Wage can seem daunting at first but whether you’re a nanny or a parent employing a nanny, it’s always better to be prepared than to run into problems later.

Leave a Reply

Note: You may use basic HTML in your comments. Your email address will not be published.

Subscribe to this comment feed via RSS