Domestic workers and the simplified PAYE scheme

If you use the services of a nanny, domestic care worker – or even a gardener or cook, you may be an employer. If you have a cleaner, or someone to help look after the children, or if you are blind or housebound and have someone help with the shopping or cleaning you could be a “micro-employer”. And if you are an employer, then you are responsible to deal with your employee’s tax.

HMRC have designed a special Simplified PAYE Deduction Scheme for ‘micro-employers’. This scheme makes the paperwork much easier. To find out more about the Simplified PAYE Deduction Scheme, go to http://www.hmrc.gov.uk/simple_deduction/index.htm or phone 0845 6070143 and ask about the Simplified PAYE Deduction Scheme.

The Simplified PAYE Deduction Scheme is may be used so long as taxable pay is no more than £160 per week, or £700 per month.