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If you wish to contact us during this period you can email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and clients can also contact us through their Members Area account.

We apologise for any inconvenience and appreciate your patience.

When you employ domestic staff in the UK there are numerous issues that you must consider.  As a domestic employer, you have the same legal responsibilities as commercial employers.  But many domestic employers have little or no experience in this role and the prospect of having to deal with both complex and time-consuming legal obligations can be a source of great concern.

Established 20 years, Stafftax is the UK's original domestic payroll service and a valued and trusted name in thousands of UK households.  We can help transform the hassle of being a domestic employer into peace of mind.

We act as your agent and we do everything for you, from setting up a PAYE scheme and calculating the correct tax and National Insurance payments, to making sure your employee's payslips are accurate.  When you subscribe to Stafftax you also receive unlimited support and advice on all pay and employment related issues:

Your annual Stafftax subscription also gives you unlimited access to our Legal Advice help-line and our legal team work closely with you and focus on finding a solution to your particular situations.  Once you have subscribed we recommend that you take advantage of our Members' Area where you can make changes to your details or those of your employee, send messages, make requests, and most importantly, download your payslips.
 

employment guide

Payslips and employment contract

You must give your employee a payslip every time you pay them, and you must also give them a contract of employment within two months of their starting date.
Read more...

employment costs

Benefits in kind

Benefits in kind are sometimes provided by the employer in addition to the employee's salary. They are often taxable benefits and must be reported annually as part of employee's gross earnings.

Who pays the tax?
Benefits in kind offer a good example of why it is important to agree a gross wage with your employee. In almost all other types of employment the employee is always responsible for paying the tax on benefits. But as many domestic staff have net pay arrangements it means that you, the employer, are responsible for paying this tax, which can potentially be a very expensive experience.

Tax on benefits in kind is payable in arrears and is not reported until July following the end of the tax year. Sometimes it can take up to two years before payments are claimed by HMRC, and during the interim your employee can have moved from one job to another, leaving the new employer responsible for paying what can in some cases be a very large sum of money. If your employee is on a gross wage, however, then the tax is deduced from their gross income at their current rate of tax.

In addition to tax there may also be a Class 1A NI charge of 12.8% of the value of the benefit to be paid - the employer always pays this charge.

Examples of taxable benefits

  • Car
  • Accommodation
  • Health Club Membership
  • Travel
  • Interest Free Loan

NB: PLEASE NOTE THAT THIS LIST IS NOT EXHAUSTIVE.

Mobile phones are not considered a taxable benefit

Use of Car
The use of a car is not considered a taxable benefit if your employee only uses it during working hours. If however your employee is permitted to take the car home and use it as a means to get to and from work, then it must be reported as a benefit in kind.

Accommodation
If accommodation is provided for the employee and it has a separate front door and separate metering for gas, water and electricity, it is considered a taxable benefit and must be reported as such.

Please note that the information and examples contained on this page are to be used as guidelines only. If you have specific questions please contact Stafftax.