When Hiring a Housekeeper in London, Be Aware of your Tax Obligations

While hiring a housekeeper in London, consider following all tax regulations. Failure to obey local tax requirements could get you and your housekeeper in hot water. Employers and employees should both understand what taxes must be paid and who is accountable for paying or deducting tax contributions.

Below are some guidelines to help you make sure you're following the right tax requirements when hiring a housekeeper in London.

Based on their job situation, you may need to treat your housekeeper just like every other staff, paying their income taxes, national insurance, and any other deductions through a payroll agency before paying them their earnings.

Being their employer, you must also guarantee that they have the proper working rights in the UK. Currently, any EU citizen can work in the UK, and anyone from a nation other than the EU must obtain a work permit or a visa. You should evaluate whether your housekeeper requires a work visa to legally work in the nation in which they are employed.

If you engage a housekeeper directly or through your firm and they are not self-employed or paid through an agency, you are deemed the "employer."

1. Employed: If you hire your housekeeper directly, you must ensure that all deductions are made appropriately before paying their salaries. You must:

  • Ascertain that they have the legal permission to work in the UK.
  • Make a contract for them.
  • Pay the housekeeper at least 20 days of vacation every year, plus 8 bank holidays.
  • (Based on a full-time, permanent job). If the employee works part-time, vacation can be calculated on a pro-rata basis.
  • Pay the housekeeper Sick Leave and Maternity Leave.
  • Provide pay stubs to the housekeeper so that they may see how much they have been paid and what has been deducted.
  • Create a payroll/PAYE system (or use a payroll service).
  • Deduct and pay the employee's income tax, national insurance contributions, and any other required deductions.

2. Housekeeping Agency in London: If your housekeeper is employed by an housekeeping agency. You won't have to worry about them paying Income Tax or National Insurance. You should simply pay the organization. The housekeeping agency in London then deducts and pays the housekeeper's Income Tax or National Insurance contributions.

Contributions to National Insurance and Income Tax:

If you hire a housekeeper directly, you must pay Income Tax and National Insurance contributions to HMRC. You will deduct this amount from your housekeeper's gross compensation. Other deductions from your employee's gross salary may be required, such as:

  • Repayment of student loans
  • Contributions to a pension
  • Payroll contributions (the employee can donate to charity before their tax is deducted)
  • Support for children (if requested by the Child Maintenance Service)

The UK Government website also contains a wealth of information and resources on employment legislation, as well as rights guidance for both employees and employers. This is also where you may register as an employer and verify if someone is legally allowed to work in the UK.


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