If you employ a nanny in the UK and you pay her more than £100 per week (tax year 2007/2008) you have the same legal responsibilities as a commercial employer and the law requires you to:

• Register as an employer
• Set up and operate a PAYE (Pay As You Earn) scheme on your nanny's behalf
• Keep tax records on her behalf
• Provide your nanny with regular payslips
• Provide her with an employment contract
• Pay regular income tax and National Insurance Contributions
• Pay employer's National Insurance Contributions
• File an employer's annual tax return