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information for domestic workers

Current tax thresholds
Your employer must register and deduct NI from your salary if you are paid £153 or more per week. Your employer must also register if you have another job, even if you are paid below the threshold.

If you are paid between £111 and £153 and you do not have another job, your employer should still register with HMRC although no Tax and NI will be due. This will enable you to receive state pension and other benefits. Tax is only deductable if you are paid £192* or more per week and you do not have another job.

Tax and NI payments
If your employer's monthly Tax and NI bill is below £1,500 they only have to pay Tax and NI to HMRC on a quarterly basis.

Payment dates
19 April 2014
19 July 2014
19 October 2014
19 January 2014

Statutory Sick Pay (SSP)
The current rate is £87.55 per week.

Statutory Maternity Pay (SMP)
The first six weeks of SMP are at 90% of average gross weekly earnings. The remaining weeks of the maternity pay period (up to a maximum of 33 weeks) are paid at the lower rate of £138.18 gross per week, or 90% if lower.

Statutory Paternity Pay (SPP)
New fathers are entitled to two weeks' SPP, with a right to a further 13 weeks of unpaid leave. The current rate is £138.18 gross per week.

Statutory Adoption Pay (SAP)
The current rate of SAP is £138.18 gross per week.

Redundancy pay entitlement
Aged between 18 and 21: half a week’s pay, or £225, whichever is lower
Aged between 22 and 40: one week’s pay, or £450, whichever is lower,
Between 41 and retirement: one and a half week’s pay, or £675, whichever is lower
Please note that you qualify for a multiple of the above for every year of continuous employment (for the same employer).

National Minimum Wage (NMW), effective from 1 October 2014
£3.79 per hour gross for employees aged between 16 and 17
£5.13 per hour gross for employees aged between 18 and 20
£6.50 per hour gross for employees aged 21 years and over

Offset allowance per 7-day week: £34.37 (effective from 1 October 2013)

Student Loan Recovery
If you have a student loan and are earning £16,910 gross per year, £1,409.16 gross per month, £325.19 gross per week or more, your employer must deduct student loan repayments form your salary.

*providing you are on a standard tax code

These rates are effective from 6 April 2014. The rates will be updated as and when they become available.

Home Domestic workers employer responsibilities
Your employer's responsibilities PDF Print E-mail
Whether you're a domestic worker or a nurse, you have the same employment rights, and your employers have the same responsibilities. You should never agree to work for an employer who is not willing to carry out these responsibilities.

Operate a PAYE scheme on your behalf
When you start work as a domestic employee your employer is responsible for operating a PAYE (Pay As You Earn) scheme on your behalf. This means that you are their employee and they must register as an employer with HMRC, which can be done through the local tax office.

Pay Your Tax & National Insurance Contributions

  • It is your employer’s responsibility to make the correct deductions from your gross pay and pay these to HMRC. Your gross wage is made up of your net pay + your income tax + employee's National Insurance Contributions (NICs). Additionally your employer also has an employer's NIC to pay. It is strongly recommended that you agree a gross wage with your new employer, not a net wage (read why here)
  • Your income tax and the NICs are payable to HMRC on a quarterly basis

Provide You With Regular Payslips
Your employer must provide you with a payslip every time your are paid. The payslip must show your gross wage, the tax and NI deductions made on your behalf, as well as your net wage. You should keep your payslips in a safe place, as you may need them as proof of earnings when applying for a loan or a mortgage.

Provide You With An Employment Contract

  • Your employer must provide you with either an employment contract or a statement of the terms and conditions of your employment within two months of your starting date
  • The document should include all terms and conditions that you have agreed with your employer, including your start date, hours of work, starting salary (which should specify gross or net), holiday entitlement etc. It should also include their agreement to operate PAYE on your behalf
  • The contract might also include a detailed description of your duties, house rules and disciplinary procedures and any other benefits to which you may be entitled (e.g. use of a car provided by your employer or re-imbursement of motoring costs if you use your own vehicle for work)
  • Your contract of employment is a legally binding agreement and obliges both you and your employer to keep to the terms of employment spelled out in it. These terms can of course be changed at any time by mutual agreement
  • A standard form of contract is available from Stafftax and most domestic agencies and they can be modified to fit the circumstances specific to your particular employment
  • It is your employer's legal responsibility, not yours, to ensure that a PAYE scheme is set up and that your income tax and NICs are paid when due. Non-compliance is a criminal offence and may result in a substantial fine