Declaring pay for an au pair

If you're planning to hire an au pair in the UK, it's important to understand your obligations as an employer. One of the key questions that many people have is whether they need to declare the pay they give to their au pair to HMRC (His Majesty's Revenue and Customs).

The short answer is: it depends. Here's a closer look at what you need to know.

What is an au pair?

First, let's define what an au pair is. An au pair is a young person, typically between the ages of 18 and 30, who comes to the UK to live with a host family and help with childcare and light household tasks. In exchange for their work, the au pair receives room and board and a small weekly allowance.

Do I need to declare the pay I give to my au pair?

Au pairs who live with the family they are working for are entitled to receive the National Minimum Wage (NMW) for the hours of work they complete. This will usually require the family to register as an employer and declare their earnings to HMRC.

When calculating the NMW for an Au pair accommodation provided can be accounted for up to £10.66 per day below the relevant NMW. If you have to retrospectively declare this for periods of work already completed there may be additional tax to pay and/or penalties or fines.

It's also important to remember that an au pair is not a replacement for a qualified nanny or childcare provider. While they can be a great help with light household tasks and keeping an eye on your children, they should not be responsible for the full-time care of young children or children with special needs.

For more information please visit the Gov.uk website or reach out to the NannyPaye team.