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2019-2020 National Insurance Changes

2019 February 18

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

Parents, as an employer of a nanny, you will need to pay HMRC employee and employer Class 1 National Insurance based on your nanny’s wage.

Employee national insurance is deducted from your nanny’s gross salary, whereas employer’s National Insurance is an additional cost on top of your nanny’s gross salary paid by you, the employer.

National Insurance is all based on the rates as below:

Weekly Gross Wage Monthly Gross Wage National Insurance Paid  
£118.00 £512.00 0% Lower earnings limit and employee not entitled to state pension and as long as not working elsewhere does not need to be submitted to HMRC.
£118-£166 £512-£719.00 0% Lower earnings limit and NI threshold and needs to be submitted to HMRC as employee then qualifies for statutory payments.
£166-£962.00 £719-£4,167 12% employee pays 13.8% employer pays
Above £962.00 Above £4,1687 2% employee pays 13.8% employer pays  

You pay this quarterly to HMRC along with your nanny’s tax and student loan if applicable. If your PAYE bill is over £1,500 a month, you will have to pay your PAYE monthly to HMRC.

If your nanny has more than one job, it is cost efficient to register separately as employers as each family will then get the benefit of the above exemption of national insurance.

For NI payment and other advice relating to employing your nanny, parents can contact www.PayrollForNannies.co.uk .

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