Advantages, Challenges & How We Can Help
A nanny share is an increasingly popular childcare arrangement where two families employ the same nanny, typically splitting costs and care time. While a nanny share can offer significant financial savings and flexibility, it also comes with added complexities—particularly around employment contracts, payroll, and tax obligations. PAYE for Nannies can handle all aspects of nanny share payroll, making the process smooth and stress-free for both families.
Benefits of a Nanny Share
Many families opt for a nanny share because it combines the advantages of personal childcare with reduced costs. Key benefits include:
- Cost Savings – By sharing a nanny’s salary, employer costs (e.g., National Insurance) are split between families.
- Personalised Care – A nanny share provides more tailored, home-based childcare than nurseries.
- Flexibility – Families can arrange care schedules that suit their needs, unlike nursery opening hours.
- Social Interaction – Children benefit from companionship while still receiving personalised attention.
Challenges of a Nanny Share
While a nanny share offers cost benefits, it also comes with additional employment considerations, including:
- Employment Contracts – Each family is a separate employer and must issue a compliant contract.
- Payroll & Tax Complexity – Salary, tax-free allowances, and pensions must be correctly divided between both employers.
- Legal Responsibilities – Each family must register as an employer with HMRC and comply with tax and employment laws.
- Differing Expectations – Communication between families is key to avoiding disputes over duties, schedules, and expenses.
How PAYE for Nannies Handles Nanny Share Payroll
At PAYE for Nannies, we specialise in nanny share payroll, ensuring both families remain compliant with employment laws. Our service includes:
- Payroll administration for both families – We correctly split wages, tax, and NI contributions.
- Employment contract drafting – Legally compliant agreements for each employer.
- Tax-free allowance management – Ensuring fair and accurate distribution of entitlements.
- Pension setup & compliance – Handling auto-enrolment responsibilities for both employers.
Unlimited HR support – Helping resolve any employment-related questions or concerns.
