As mentioned in the previous article once certain conditions are satisfied host family has to register with HRMC as an employer.
As an employer you have a legal obligation to operate PAYE on the payments you make to your employees if their earnings reach the National Insurance Lower Earnings Limit (LEL). For the tax year 2012-13 this is £107 a week, £464 a month or £5,564 a year
How much National Insurance you have to pay for your employee?
Applying for a National Insurance Number with our Aupair Agency
If you have just started working in the UK you must apply for a National Insurance Number by contacting the National Insurance Registrations Helpline on Tel 0845 915 7006. Lines are open 8.30 am to 5.00 pm Monday to Friday.
What happens when you apply for a National Insurance number
Jobcentre Plus will arrange an 'Evidence of Identity' interview for you or send you a postal application.
Two types of financial support are available under the Ofsted regsiter which came into force in April 2007: working tax credits and employer-supported childcare vouchers.
Many nanny employers will not benefit from the working tax credit as only households with a combined family income of £59,000 or less will qualify.
However, it is expected that employer-supported childcare vouchers will become a popular way for parents to make a substantial saving, as this form of tax relief is available to all parents, regardless of income.
The amount and type of National Insurance contributions you pay depend on whether you're employed or self-employed and how much you earn. The rates shown below are for the 2011-12 tax year.
IF YOU ARE EMPLOYED
If you're employed you pay Class 1 National Insurance contributions. The rates are:
- if you earn more than £139 a week and up to £817 a week, you pay 12 per cent of the amount you earn between £139 and £817
WHEN YOU NEED TO REGISTER
You don't necessarily need to register as an employer once you take someone on. Check first that at least one of the following conditions applies to you. If any apply, then you need to register:
- the employee already has another job
- they are receiving a state or occupational pension
- you're paying them at or above the PAYE threshold (http://www.hmrc.gov.uk/paye/rates-thresholds.htm)
- you're paying them at or above the National Insurance Lower Earnings Limit (