subscribe to stafftax
renew stafftax subscription
access-members-area
stafftax tax calculator

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 2013
£3.72 per hour gross for employees aged between 16 and 17
£5.03 per hour gross for employees aged between 18 and 20
£6.31 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 Can I be self-employed?
Domestic workers & self employment PDF Print E-mail
"Can I sort out my own tax and National Insurance?" this is a question we're frequently asked by domestic workers. Whether someone is employed or self-employed depends on the terms and conditions of their work. It is important for all employees to know their employment status as it affects employment and benefit rights, and how to pay tax and National Insurance Contributions.

It is equally important that the employer is absolutely certain whether their employee is employed or self-employed.

How to determine employment status
A worker is probably considered employed if they:

  • have to do the work themselves
  • can be told at any time what to do, where to carry out the work or when and how to do it
  • work a set amount of hours
  • can be moved from task to task
  • are paid by the hour, week or month
  • can be paid overtime or receive bonus payments

A worker is probably considered self-employed if they:

  • can hire someone else to do their work or engage helpers at their own expense
  • risk their own money
  • provide the main items of equipment needed to do their job, not just the small tools that many employees provide for themselves
  • agree to do a job for a fixed price regardless of how long the job may take
  • can decide what work to do, how and when to do the work and where to provide the services
  • regularly work for a number of people
  • have to correct unsatisfactory work in their own time and at their own expense

*Please note that these lists are not exhaustive.

The exception to the rule
It's clear to see that in most cases domestic workers do not meet HMRC's criteria for self-employment.

However in some cases HMRC do grant domestic workers self-employment status. It's important to remember, though, that transfer of self-employment status between jobs is not automatic, and each situation will need to be considered individually.

So in the vast majority of cases a domestic employee will be employed and it is up to their employer to register with HMRC, operate a PAYE scheme and pay tax and National Insurance Contributions on their behalf. Failure to declare an employee to avoid paying tax and NI is a criminal offence which can result in heavy penalties. It also affects statutory entitlements such as unemployment benefit, statutory maternity pay and state pension.