UK · 2026 to 2027 tax year
Nanny tax calculator
| Item | Per period | Per year |
|---|---|---|
| Gross pay | £628.46 | £32,679.92 |
| Income tax (PAYE) | −£77.20 | −£4,014.40 |
| Employee National Insurance | −£30.92 | −£1,607.84 |
| Nanny’s pension | −£20.34 | −£1,057.68 |
| Nanny’s take-home | £500.00 | £26,000.00 |
| Employer National Insurance | £79.87 | £4,153.24 |
| Employer pension | £15.25 | £793.00 |
| Total cost to you | £723.58 | £37,626.16 |
The official method, step by step
- From an agreed take-home figure, the calculator finds the lowest gross pay whose take-home reaches it, using the same deductions as below.
- Income tax (PAYE) comes from the nanny's tax code with HMRC's 2026/27 method, for a typical period with the same pay since 6 April.
- Employee National Insurance is 8% of pay between £242 and £967 a week (£1,048 and £4,189 a month) and 2% above, for category letter A.
- Employer National Insurance is 15% of pay above the secondary threshold (£96 a week, £417 a month). Employment Allowance can't reduce it for a nanny or other domestic worker, unless they're a carer or support worker.
- The pension is worked out on qualifying earnings (£120 to £967 a week, £520 to £4,189 a month). The legal minimum is 8% in total, at least 3% from you; under relief at source the nanny's 5% is deducted as 4% and the scheme claims the rest.
- Total cost to you is gross pay plus employer National Insurance and employer pension.
What this leaves out
- Holiday pay, sick pay, maternity and other statutory pay
- Student loans and National Insurance letters other than A
- Salary sacrifice pensions
- Changing pay or a part-year start (the to-date figures change PAYE)
- Employer's liability insurance and any other costs of employing someone
Sources: HMRC, Specification for PAYE Tax Table Routines, version 24.0 (February 2026), Appendices A–C; HMRC, Rates and thresholds for employers 2026 to 2027; HMRC, 2026 to 2027: Employer further guide to PAYE and National Insurance contributions (CWG2); The Pensions Regulator, Earnings thresholds 2026-2027: qualifying earnings £6,240 to £50,270 a year (£120 to £967 a week, £240 to £1,934 a fortnight, £480 to £3,867 every 4 weeks, £520 to £4,189 a month); HMRC, Pensions Tax Manual PTM044220: relief at source (the member pays the contribution net of basic rate tax, 20%); HMRC, Pensions Tax Manual PTM044230: net pay arrangement (deducted from pay before tax); HMRC, Salary sacrifice for employers: the effect on tax and National Insurance of pay given up for a non-cash benefit; The Pensions Regulator: minimum automatic enrolment contributions since 6 April 2019 (employer 3%, staff 5%, total 8% of qualifying earnings); GOV.UK, Employment Allowance: who cannot claim (someone employed for personal, household or domestic work, like a nanny, unless they're a carer or support worker).
Nanny tax calculator: common questions
What is nanny tax?
It's the income tax and National Insurance that a family who employs a nanny must run through PAYE, plus the employer's own National Insurance. The family is the employer, so it deducts the nanny's tax and NI from their pay and pays them to HMRC with its own contribution.
How do I work out gross pay from an agreed net wage?
Choose "Agreed take-home (net)" and enter the figure. The calculator works back to the gross pay that gives that take-home after PAYE, employee National Insurance and any pension deduction, and shows what that gross pay costs you.
Do I have to pay employer National Insurance for a nanny?
Yes, on pay above the secondary threshold (£96 a week or £417 a month in 2026/27), at 15%. Employment Allowance, which reduces employer NI for many businesses, can't be claimed for a nanny or other household worker unless they're a carer or support worker.
Do I have to put my nanny in a pension?
A family that employs a nanny can have automatic enrolment duties like any other employer; The Pensions Regulator's duties checker tells you whether yours does. When a nanny is enrolled, the minimum is 8% of qualifying earnings, of which at least 3% comes from you.
Can I make the nanny's payslip from this?
Yes. "Make this period's payslip" opens the payslip generator with the gross pay, tax code, pension, PAYE and National Insurance filled in. Add the pay date and the nanny's details; the tax lines are worked out again for that date.
Need a payslip for this pay?
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