{"id":11880,"date":"2024-01-02T10:42:20","date_gmt":"2024-01-02T10:42:20","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=11880"},"modified":"2025-09-09T16:43:17","modified_gmt":"2025-09-09T15:43:17","slug":"the-ins-and-outs-of-nanny-tax","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/blog\/the-ins-and-outs-of-nanny-tax\/","title":{"rendered":"The ins and outs of nanny tax"},"content":{"rendered":"\n

When we say nanny tax<\/strong>, we don\u2019t just mean your tax return if you\u2019re a self-employed nanny or childminder. As a parent or guardian, you also may have to think about HMRC when you approach someone to look after your children. As with most things tax, the devil is in the detail. So we\u2019ve put together this blog to explain the tax implications of both working as a nanny, and of hiring a nanny to work for you. <\/p>\n\n\n\n

Nanny tax for childminders<\/h2>\n\n\n\n

As a self-employed nanny or childminder, you\u2019ll be responsible for declaring your earnings to HMRC yourself. You do this via a tax return – a process where you submit your earnings and expenses over a 12 month period. The deadline to file and pay your nanny tax<\/strong> is 31st January, and you\u2019ll be declaring your earnings from 6th April to 5th April the previous year.<\/p>\n\n\n\n

How do I work out my taxes?<\/h2>\n\n\n\n

The moment you file, you find out what you owe in tax – but you won\u2019t be charged until 31st January. So file as early as you can! Here are the key dates and deadlines to keep in mind this tax year.<\/p>\n\n\n<\/div> \n\n

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Key dates in the current <\/span>2025\/26 tax year \ud83d\udc47<\/b><\/p>\n\n\n\n\n\n\n\n\n
Deadline<\/b><\/td>\nDate<\/b><\/td>\nYear<\/b><\/td>\n<\/tr>\n
Tax year starts<\/span><\/td>\n6th April<\/span><\/td>\n2025<\/span><\/td>\n<\/tr>\n
Tax year ends<\/span><\/td>\n5th April<\/span><\/td>\n2026<\/span><\/td>\n<\/tr>\n
Register for self assessment<\/span><\/td>\n5th October<\/span><\/td>\n2026<\/span><\/td>\n<\/tr>\n
Pay tax bill by PAYE salary<\/span><\/td>\n30th December<\/span><\/td>\n2026<\/span><\/td>\n<\/tr>\n
Self assessment deadline<\/span><\/td>\n31st January<\/span><\/td>\n2027<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n
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What tax do I owe?<\/h2>\n\n\n\n

This all depends on how much you earn. As a general rule, there are two taxes that you\u2019re potentially liable to pay. Income tax and National Insurance.<\/p>\n\n\n<\/div> \n\n

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The <\/span>income tax<\/b> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
Income<\/strong><\/td>\nTax rate<\/strong><\/td>\nTax band<\/strong><\/td>\n<\/tr>\n
Up to \u00a312,570<\/span><\/td>\n0%<\/span><\/td>\nPersonal allowance<\/span><\/td>\n<\/tr>\n
\u00a312,571 to \u00a350,270<\/span><\/td>\n20%<\/span><\/td>\nBasic rate<\/span><\/td>\n<\/tr>\n
\u00a350,271 to \u00a3125,140<\/span><\/td>\n40%<\/span><\/td>\nHigher rate<\/span><\/td>\n<\/tr>\n
over \u00a3125,141<\/span><\/td>\n45%<\/span><\/td>\nAdditional rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n
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National Insurance<\/b> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
NI class<\/strong><\/td>\nWho pays?<\/strong><\/td>\nHow much?<\/strong><\/td>\n<\/tr>\n
Class 1<\/span><\/td>\nEmployees earning over \u00a312,570<\/span><\/td>\n8% on earnings between \u00a3242 and \u00a3967 per week<\/span><\/p>\n

2% if you earn \u00a3967+ per week<\/span><\/td>\n<\/tr>\n

Class 1A\/1B<\/span><\/td>\nEmployers<\/span><\/td>\n15%<\/span><\/td>\n<\/tr>\n
Class 3<\/span><\/td>\nVoluntary contributions<\/span><\/td>\n\u00a317.75 per week<\/span><\/td>\n<\/tr>\n
Class 4<\/span><\/td>\nSelf-employed earning over \u00a312,570<\/span><\/td>\n6% on profits between \u00a312,570-\u00a350,270<\/span><\/p>\n

2% on profits over \u00a350,270<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n

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What do I earn to not file a tax return?<\/h2>\n\n\n\n

To understand this, you need to know about the Personal Allowance<\/a>. The Personal Allowance is the tax-free portion of your income. Everyone who earns less than \u00a3100,000 per year is entitled to the full Personal Allowance. When you earn less than this per year, you won\u2019t pay Income Tax or National Insurance. But you may still need to file a tax return. <\/p>\n\n\n\n

This is because HMRC still needs to be aware of what you\u2019re earning, and from what activity. So the only time that you\u2019re exempt from doing a tax return as a self-employed person (or as someone who childminds as a side hustle) is when you earn less than \u00a31,000 per year.\u00a0<\/p>\n\n\n\n

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