From April the NMW (National Minimum Wage) rates are changing for the 20/21 tax year.
As an employer you must comply with the national minimum wage, if you do not you could end up in an Employment Tribunal or be reported to HMRC and face a fine of up to £20,000.
The new hourly rates for the tax year 2020/21 are:
- Apprentice – £4.15
- 16 to 17 year old – £4.55
- 18 to 20 year old – £6.45
- 21-24 year old – £8.20
- 25+ – £8.72
If nanny lives in the family home and not separate accommodation provided by the employer, then the national minimum wage does not apply.
For live in nannies, there is a daily accommodation offset rate of £8.20 per day, £57.40 a week. These rates are set every April, so it is important to keep up to date with the new legislation. These rates are from April 2020.
For accommodation provided to nanny other than the family home, this will need to be declared as a Benefit In Kind.
