Nannies and Au Pairs: Regulations and Employment

Nannies and au pairs have different legal status and registration requirements from nurseries and childminders. Understanding when Ofsted registration is required - and the benefits of voluntary registration - is essential for both nannies and the families employing them.

Nanny registration requirements

Au pair regulations

Au pairs are not professional childcare providers and have a completely different legal status from nannies:

For parents: Employing a nanny

If you employ a nanny, you are their employer and have legal responsibilities:

• PAYE tax and National Insurance: Register as an employer with HMRC and operate PAYE. Deduct tax and NI from your nanny's salary and pay employer's NI contributions.
• Employment contract: Provide a written employment contract covering hours, pay, holidays, notice period, sick pay, and duties.
• Workplace pension: Auto-enrol your nanny into a workplace pension if they earn £10,000+ per year and are aged 22 or over.
• Statutory payments: You must pay Statutory Sick Pay, Statutory Maternity/Paternity Pay if eligible.
• Employer's Liability insurance: Legally required (£5 million minimum) if your nanny works in your home.
• DBS check: Request an Enhanced DBS check before employment. Your nanny should obtain this through an umbrella body or the DBS Update Service.
• Right to work check: Check your nanny's right to work in the UK before they start, as required by the Immigration, Asylum and Nationality Act 2006.

Many families use nanny payroll services (e.g., Nannytax, Nanny PAYE) to handle tax, NI, and pension administration.

Tax-Free Childcare eligibility

This is a key consideration when choosing between a nanny and other childcare options:

If your nanny registers voluntarily with Ofsted, you can claim up to £2,000 per child per year through Tax-Free Childcare - making voluntary registration financially worthwhile for both nanny and family.