It is relatively common in the South East of England for parents to employ nannies to assist with Childcare.
Normally the parents would engage the services of a nanny payroll provider or an accountant to assist them with the necessary requirements of tax and employment issues, as they can get quite complex.
There is an important date coming up shortly for anyone who employs a nanny.
The first staging dates for work place pensions is June 2015, an employer will be required to set up and pay into a pension for staff.
Small employers, of which people who have a nanny are small employers, will be required to have, and pay into pension facilities for all staff.
It is expected this may encourage parents to make cash in hand payments to nannies to avoid pension payments, as this would potentially save parents thousands of pounds in pension payments, national insurance and income tax.
Once the dust settles, it is expected HMRC will run a targeted campaign on the black market, cash in hand, nanny employment sector and pensions.