Nanny End of Financial Year (UK)

Tax pie chartIt is now the end of the 2011/12 Tax Year ( 6th April 2011 to 5th April 2012) and employers of nannies now need to complete the HM Revenue & Customs P35 Employer Annual Return, which is due the 19th May.

Parents who use a nanny payroll service to help operate PAYE should have been asked by their payroll service to provide some details which the payroll service will use to complete the P35 for you.

The questions that are asked are things like:
Have you employed anyone other than your existing nanny during the financial year?
Have you paid the nanny any money other than mileage payment, that has not appeared on a payslip?
Have you provided your nanny with any benefits because of their job?   I suppose by that they mean things like providing accommodation, gym membership, a car for the nannies own use.

Mileage Payments

Nannies can be paid up to 45p per mile for the first 10,000 miles they do in their job, such as transporting children to/from activities.    You need to tell your payroll provider how many miles your nanny has done April 6th 2011 to April 5th 2012 and the rate you have paid.     If you have provided money for fuel instead, or for train/bus tickets then tell your payroll provider about that.

The P35 also needs information about Statutory payments made to your employee such as Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP).

If you are not using a nanny payroll company or an accountant to help you operate PAYE, then you may find the E10 Helpsheet useful for how to complete the P35 Employer Annual Return.


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