FAQs

Domestic Payroll and Domestic Staff Employment FAQs

Whether you employ carers, cleaners, gardeners, or other domestic staff, our comprehensive payroll solutions are designed to simplify your responsibilities and ensure compliance with UK employment laws. Explore the sections below to find out more information about our services, and your employer duties. If you need further assistance, please don’t hesitate to contact our expert team.

If your query is not answered, contact Stafftax on 0203 137 4407 between 8.30am – 7.30pm, Monday to Friday and 10am to 4pm on Saturday and Sunday or email info@stafftax.co.uk

What is domestic payroll?

Domestic payroll in the UK refers to the management and processing of payroll for employees who work within a household. Key aspects include registering as an employer with HMRC, paying taxes, processing payroll and reporting RTIs to HMRC.

Do I need to pay my employee through a payroll system?

If you employ domestic staff, you are considered an employer and must operate a PAYE (Pay As You Earn) system. This includes deducting Income Tax and National Insurance contributions from your employee’s wages.

How do I calculate National Insurance contributions for my domestic staff?

National Insurance contributions are calculated based on your employee’s earnings. Employers and employees pay a percentage of NI based on the employee’s gross salary, tax, and NI code. The latest rates can be found on the UK government’s website.

Do I need to provide a payslip to my employee?

Yes, by law, you must provide your domestic staff with a detailed payslip each time they are paid. The payslip should include gross pay, deductions (such as tax and National Insurance), and the net pay received.

Can I pay my domestic staff cash-in-hand?

While you can pay your employee in cash, you still need to process their payroll through PAYE, report the earnings to HMRC, and make necessary deductions for tax and National Insurance. Cash-in-hand payments without proper deductions are illegal.

What are the different types of household staff?

There are various types of household staff that can be employed to assist with different tasks such as nanny, housekeeper, cleaner, gardener, cook, butler, chauffeur, and personal assistant. Each role can vary in duties and responsibilities depending on the needs of the household.

How do I register as an employer with HMRC?

You must register as an employer with HMRC (His Majesty’s Revenue and Customs) before your employee’s first payday. As part of the Stafftax Payroll & HR service, we do this for you.

What records do I need to keep for my employee’s payroll?

Employers must keep detailed records of each payment made to their employee’s, including gross pay, deductions, net pay, and the hours worked. Additionally, records of tax and National Insurance contributions paid to HMRC should be maintained.

What are my responsibilities regarding pension contributions for my domestic staff?

If your employee earns above a certain threshold (£10,000 per year as of 2024), you must enrol them in a workplace pension scheme and make contributions. This is part of the UK’s auto-enrolment pension laws.

What happens if my employee is sick?

If your employee is off work due to illness, they may be entitled to Statutory Sick Pay (SSP) if they meet certain criteria, including earning at least £123 per week (as of 2024). SSP is paid by the employer, and the rules and rates are set by the government.