Can my Nanny be Self Employed?

When hiring a nanny, one of the most common questions families ask us is: “Can my nanny be self-employed?” It’s an important question because the answer has legal and financial implications for both families and nannies.

The short answer is: in most cases, no – a nanny cannot be self-employed.

Why not?

HMRC (the UK tax authority) sets clear rules about whether someone should be classed as employed or self-employed. These rules depend on how the work is carried out, not simply on what families or nannies prefer.

A nanny is almost always considered an employee because:

• They work for one family, on set days and hours.

• They take instruction from the family regarding their duties.

• They are paid a regular wage.

This all points towards an employment relationship rather than self-employment.

When could a nanny be self-employed?

There are very limited situations where HMRC may accept a nanny being self-employed, for example:

• If the nanny works ad hoc or irregular hours (different days each week).

• If the nanny works for multiple families at the same time, managing their own diary and availability.

• If the nanny is more like a temporary, occasional childcare provider rather than a consistent employee.

Examples might include:

• A “temp nanny” who covers school holidays for different families.

• A nanny offering occasional evening babysitting across several households.

• A nanny who runs their own small childcare business, providing short-term help to multiple families.

In all these cases, the nanny is effectively in business for themselves, not tied to one employer.

Why it matters

If a nanny is wrongly classed as self-employed when they should be employed, both the nanny and the family could face problems with HMRC, including backdated tax, National Insurance contributions, and possible penalties.

Being an employer may feel daunting, but there are plenty of payroll services that make it straightforward. It also ensures your nanny receives important rights, such as:

• Paid holiday

• Statutory sick pay

• Maternity/paternity rights

• Workplace pension contributions

This provides security for the nanny and peace of mind for the family.

Our advice

At The Nanny Connection, we always recommend that families employ their nanny through PAYE rather than assuming self-employment is an option.

If you’re unsure, it’s always best to seek advice from HMRC or a payroll specialist to make sure you’re compliant.

✅ Key takeaway: Unless your nanny works ad hoc hours for multiple families, they should be employed by you, not self-employed.