There are certain responsibilities you must undertake as an employer. Firstly, both parties must agree on/and sign a contract. You will need to register as an employer and you will also need employers liability insurance. 

Further responsibilities are:

• Set up a PAYE (pay as you earn scheme for your employee) 

• Pay all NI contributions 

• Pay income tax 

• Pay employer’s N.I contributions 

• File an employer yearly tax return 

• Provide the employee with payslips 

• Make pension contributions – auto-enrol into a pension scheme 

• Car insurance (if you wish your nanny to drive a car provided).