Employers of private household staff in the UK have the same legal responsibilities as commercial employers and are required by law to:

  • Register as an employer
  • Set up and operate a PAYE (Pay As You Earn) scheme on the employee’s behalf
  • Keep tax records on their behalf
  • Provide the employee with regular payslips
  • Provide them with an employment contract
  • Pay regular income tax and National Insurance Contributions
  • Pay employer's National Insurance Contributions
  • Submit a Full Payment Submission (FPS) using Real Time Information (RTI) compliant software every time the employee is paid
  • Submit an Employer's Payment Submission (EPS) whenever necessary

These obligations also apply:

  • In short-term employment (i.e. a week or longer)
  • To any employment taking place in the UK - irrespective of the country of origin of the employee or employer

Consider the following:
Failure to submit an accurate FPS every time you pay your employee can result in late filing penalties, which could mount to hundreds of pounds.

Failure to pay all tax / NI liabilities before 19 April each year results in interest being charged on the amount outstanding. All these legal obligations can be not only complex but also time-consuming, especially for a first-time employer. Without working knowledge of the tax system and current employment law, you are entering a minefield. Businesses use skilled payroll, legal and human resources professionals. Now you can too - at a fraction of the price.