If you hire a nanny to care for your child, you will become an employer. As an employer, you have to meet certain obligations such as paying tax and national insurance, and providing a pension for your nanny.
If you’re thinking about sharing a nanny, both sets of parents will be employers. This means that although you can share some of the costs, you’ll both have the same legal obligations to abide by. Both families will pay national minimum wage (as of April 2024 it's £11.44gprhr)
What you are required to have in place to hire a Nanny.
Liability insurance
You’ll need employer’s liability insurance, which covers you if your nanny becomes ill or has an injury as a result of working for you. You may already be covered by other insurance policies you hold, but check carefully.
If you’re in any doubt ask an independent insurance broker.
Nanny Contract
Your potential nanny may already have a template of a contract that may be suitable to use, if not a nanny agency for example: Nanny Matters, Nanny Tax, Nanny Paye may also be able to provide one.