Recently, we have been receiving more and more enquiries from families who have never employed a nanny before. With so many factors to consider—from legal responsibilities to salary expectations—we understand that the process can feel overwhelming. To help, we have put together this short guide outlining the key considerations when hiring a nanny in London. Whether you are new to employing a nanny or simply need clarity on what to expect, this article will provide you with a helpful starting point.

Understanding Your Responsibilities as an Employer

Is a Nanny an Employee or Self-Employed?

One of the most common questions we receive is whether a nanny should be classified as an employee or self-employed. In almost all cases, a nanny working for a single family is considered an employee, meaning the parents are responsible for managing payroll, tax deductions, and employment benefits.

If a nanny has worked on a self-employed basis in the past, this does not automatically apply to your arrangement. To avoid legal or financial issues, we always recommend confirming employment status with HM Revenue & Customs (HMRC) or working with a specialist nanny payroll provider, which we can arrange for you.

Key Employer Responsibilities

Once you employ a nanny, you take on several important obligations, including:

• Registering as an Employer with HMRC – Parents must register to manage tax and National Insurance contributions (NICs) for their nanny.
• Setting Up Payroll – A nanny payroll service ensures tax, NICs, and pension contributions are deducted correctly.
• Providing an Employment Contract – This legally required document should outline duties, working hours, salary, holiday entitlement, and notice periods.
• Offering a Workplace Pension – If your nanny qualifies, you must enroll them in a pension scheme.
• Arranging Employer’s Liability Insurance – This protects you in case your nanny has an accident while working.
• Paying a Fair Salary – Understanding market rates ensures your nanny is compensated appropriately.

What Are the Typical Nanny Salaries in London?

Salary expectations vary depending on experience, hours worked, and whether the nanny is live-in or live-out. Below are approximate figures:

Live-Out Nanny

• £20-£23+ gross per hour (£15-£16 net per hour)
• Full-time salary: £53,000-£58,000+ gross per year (for a 50-hour week)

Live-In Nanny

• £500-£700+ net per week
• Full-time salary: £33,299-£50,000+ gross per year
• Accommodation and food provided by the employer

Rota Nanny or 24/5 Live-In Nanny

• £60,000-£80,000+ gross per year
• Higher salaries for travel and flexible schedules

Understanding Net vs. Gross Salary

A net salary refers to the amount the nanny takes home after deductions, while the gross salary includes tax, National Insurance, and pension contributions. Employers are generally expected to pay a gross salary to ensure compliance with HMRC regulations and to protect against potential liabilities related to unpaid tax.

What Benefits and Entitlements Should You Offer?

Salary Reviews and Bonuses

Many families offer a 5-10% salary increase annually or provide a discretionary bonus to reward long-term commitment.

Paid Holidays

• Full-time nannies are entitled to 5.6 weeks (28 days) of paid leave, including UK bank holidays.
• Part-time nannies receive holiday entitlement on a pro-rata basis.

Statutory Rights

Nannies are entitled to statutory sick pay, maternity/paternity leave, and employer pension contributions.

What Duties Can You Expect a Nanny to Perform?

A nanny’s primary responsibility is childcare. Typical duties may include:

• Preparing meals and snacks for children
• Organising educational and recreational activities
• Helping with homework
• School and nursery drop-offs and pickups
• Managing children’s wardrobes and organising their rooms

While nannies may tidy up after children, they are not responsible for deep cleaning. If additional household tasks are required, parents may need to consider hiring a nanny housekeeper.

Additional Considerations for First-Time Employers

Babysitting and Overtime

Live-out nannies may babysit in the evenings, but this should be arranged in advance and paid at an agreed overtime rate. Live-in nannies typically include one or two nights of babysitting per week as part of their salary, with extra nights compensated separately.

Travelling with a Nanny

If you need your nanny to accompany your family on trips, travel expenses should be covered, and the nanny should be paid for their time away. These terms should be agreed upon before employment begins and outlined in the contract.

How Forbes Nanny Agency London Can Help

We understand that hiring a nanny for the first time can feel like a complicated process. At Forbes Nanny Agency London, we take the stress away by guiding you through every step. Our services include:

• Matching you with highly experienced, vetted nannies
• Assisting with employment contracts and HR best practices
• Working with leading nanny payroll providers to ensure compliance with tax and pension requirements
• Offering continued support throughout the placement

Forbes Nannies London is dedicated to making your nanny hiring experience smooth, stress-free, and tailored to your family’s needs.

Get Started Today

If you are looking to hire a nanny in London and would like expert guidance, Forbes Nanny Agency London is here to help. Contact us today to discuss your requirements and find the ideal nanny for your family.

For more information, get in touch with our team. We look forward to assisting you.

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