Home Employers employment guide key points to consider
Key points to consider PDF Print E-mail

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.

 

employment law

Introducing our legal service

Your annual subscription to Stafftax entitles you to unlimited use of our Legal Advice help-line. We encourage you to make as much use of this service as you need to manage your domestic employment relations effectively. If you require clarification or advice about any employment issue, other than payroll, then please call or email the Legal Advice helpline.

The Legal Advice helpline is available to you as an employer and is not available to your employee as this may cause a conflict of interest. However, if you wish to make an enquiry to assist your employee, you may call on their behalf.

What we do
Rather than simply explain what you can and cannot do, our legal team work closely with you and focus on finding solutions to your particular situation and problem. We accept and reply to email enquires and will also offer help with drafting letters (should you require it) at no additional charge to you.

Additionally, should you find yourself in a particularly difficult situation and need more help or support over and above that provided by your subscription, we can arrange for you to meet with a member of the legal team in person and for a special member’s rate they can help resolve the matter directly.

employment costs

Always agree a gross wage with your employee

Employers often agree a net (i.e. take-home) wage with their employee, but in reality they are always paid a gross salary, with tax and National Insurance Contributions deducted and paid to HMRC on a quarterly basis by the employer. Although many domestic employers tend to look on this as an additional cost, it is actually part of the employee's gross wage.

If you agree a fixed net wage you are committing yourself to paying all of your employee’s income tax and NI to make up their gross wage, irrespective of their individual tax code or tax position.

Please also be aware that a gross wage is not the total cost to you as an employer. In addition to this you have to pay an Employer’s National Insurance Contribution, which is not part of the employee’s gross wage. This extra sum will be advised to you when we send your first payslip for your employee.