It is that time of year, you may want to give nanny a Christmas bonus, but remember it must be processed through the payroll!
As HMRC class this as taxable income.
If you have decided to give nanny a Christmas bonus, whether it be £50 or £1,000, you must declare it and it is subject to tax and NI.
If you have agreed a net bonus, there will be additional tax and national insurance on top of this amount. Whereas, if you have agreed a gross bonus, (please don’t give them that amount), as tax and national insurance will need to be deducted from that and you then pay nanny the net amount.
A gift such as a voucher, chocolates, wine will not be seen as a benefit in kind as long as it does not exceed £50.00.