Residential Nannies (Live-In Nannies)

Live In or residential nannies are relatively uncommon these days as most nannies prefer to view their employment as any other job and to live in accommodation unrelated to their work. However, following the recent enlargement of the European Union, PAYE for Nannies has become aware of a growing number of nannies coming to the UK from the states which have recently joined the EU and who are actively seeking live-in positions. The supply of nannies who are willing to accept residential employment has therefore increased significantly.

All residential nannies will require a minimum standard of accommodation and this will normally include their own bed-sitting room, preferably with own bathroom or en-suite facility.

In some circumstances, where they live as part of the family and share leisure activities with the rest of the family (e.g. eating all meals with the family and sharing the same sitting room in the evenings), residential nannies will not be covered by the minimum wage regulations. However, in all other circumstances, they will be covered by the regulations.

Employers should be aware that although the pay of residential nannies will be less than that of a live-out nanny in an equivalent position, the difference is often much less than an employer might expect and the agreed wage will not be reduced by the full value of the accommodation and food provided. Employers should also note that the regulations relating to the National Minimum Wage (for nannies who are NOT living as part of the family) are very strict in relation to the amount that can be "offset" in respect of food and accommodation provided, if this reduces pay below that set out in the regulations. A maximum of £4.46 (gross) for each day accommodation is provided may be offset against the gross wage for the purposes of calculating if the National Minimum Wage regulations are being observed (£31.22 per week).
IMPORTANT: Where employees do not live as part of the family, providing accommodation for employees outside the employer's home may well attract a very substantial tax charge. Employers are advised to take advice on this before offering an employee any such accommodation.