Families who pay a nanny in cash are to be targeted by HMRC. Under the crackdown, families now need to contact HMRC every time they pay their nanny, instead of just each quarter as previously applied under the simplified PAYE scheme.

It is estimated that there are more than 30,000 nannies working in England alone – and a survey found that a fifth of them worked without tax or NICs being deducted. In theory, this adds up to a loss in tax totalling approximately £57m a year.


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