Nanny Payroll Calculator

Hiring a nanny makes you a real employer · PAYE, employer NI, pension, payslips. Here is the true monthly cost, and the nanny's take-home from it.

Your True Monthly Cost
£0
Enter the salary to calculate
Nanny's Take-Home / Month
£0
Employer NI (15%)
£0
Employer Pension (3%)
£0
Payroll Admin
£0
TFC Contribution
£0
Annual Total Cost
£0
Enter the salary to get started.
Where Your Money Goes
Your Employer Obligations
✅ PAYE scheme registration + RTI payslips every payday
✅ Written contract · 5.6 weeks paid holiday · SSP when sick
✅ Pension auto-enrolment · 3% employer minimum
✅ Employer's liability insurance (often in home insurance · confirm)
✅ Maternity rights and redundancy rules apply
❌ Paying cash-in-hand · it is tax evasion and removes the nanny's rights

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Nanny Payroll FAQs

Am I really an employer?
Fully and legally: PAYE registration, payslips and RTI every payday, tax and NI deductions, 15% employer NI above £5,000/year, pension auto-enrolment, contract, holiday and sick pay. Nanny payroll services (£200-£300/year) handle the admin · this calculator includes that cost. Note: the Employment Allowance does NOT apply to employers of domestic staff like nannies.
Why agree gross salary, not net?
Net agreements make YOU absorb every change in the nanny's tax life: a second job, student loan, or tax code change raises your cost while her take-home stays fixed. Agreeing gross · like every normal employer · fixes your cost. Industry bodies universally recommend it; convert any net quote to gross before signing.
Can Tax-Free Childcare pay toward a nanny?
Yes, when the nanny is Ofsted-registered: the 20% top-up contributes up to £2,000 per child per year. Registration costs ~£220/year plus first aid and insurance · nearly always worth it for the family. Pay her through the TFC account to collect the top-up.
What is a nanny share?
Two families share one nanny: each typically pays 60-66% of a sole-charge salary, saving both about a third while the nanny earns more overall. Each family runs payroll for its own share. It is the single biggest lever on nanny affordability · this calculator's share option models your portion.
What else do I owe as an employer?
Written contract, 5.6 weeks paid holiday, SSP, 3% pension, maternity rights, employer's liability insurance (check your home policy), and redundancy treatment if circumstances change. Cash-in-hand is not a shortcut · it is evasion, with penalties for you and no safety net for her.

For informational purposes only · Not employment or tax advice · 2026/27: employer NI 15% above £5,000, pension 3% on qualifying earnings, nanny tax/NI at standard employee rates · Employment Allowance not available for domestic employers · Use a nanny payroll service for compliance