If you employ domestic staff in the UK 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 employee’s behalf
• Keep tax records on their behalf
• Provide your employee with regular payslips
• Provide them 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

These obligations also apply:

• In short-term employment (i.e. a week or longer)
• To any employment taking place in the UK - irrespective of the country of origin of the employee or employer

Consider the following:
Failure to file employer's annual returns by 19 May can result in penalties of £100 per month filed late

Failure to pay all tax/NI liabilities before 19 April results in interest being charged on the amount outstanding. All these legal obligations can be not only complex but also time-consuming, especially for a first-time employer. Without working knowledge of the tax system and current employment law, you are entering a minefield. Businesses use skilled payroll, legal and human resources professionals. Now you can too - at a fraction of the price.