When Buddies/Mannies find work through My Big Buddy they are not employed or paid by the Agency. They are either:
- hired as contractor by the family and administer their own tax and NI via self employment
- hired as an employee of the family, who register with HMRC as an employer
If an applicant is offered a casual or temporary placement or ongoing, part time arrangement through a membership, chances are they are a contractor and should be paid directly. Any applicant offered an ongoing, full time contract should be employed by the family and paid via payroll.
Hiring as a Contractor (all Casual Buddies and Buddies working through an MBb Membership)
If you determine your Buddy is a contractor you will need to organise the following:
- ensure your contractor has valid self employment statis and arrange payment on issued invoices,
- check your contractors insurance and your insurance on protection for if your Buddy has an accident in your home, as most Buddies operate as sole traders and as such aren’t covered by workers compensation.
Hiring as an Employee
If you determine your Buddy is an employee you will need to organise the following:
As an employer you will be required to:
- register as an employer with HMRC allowing you to withhold PAYE tax and NI,
- issue a payslip for each pay period in line with legislative requirements,
- issue an employment contract in line with the National Minimum Standards (we can supply this)
To help you with payroll administration we recommend Nanny Tax http://www.nannytax.co.uk, who offer a range of cost effective packages specialising in employing nannies.
If your Buddy will be driving your vehicle you should ensure you have the appropriate insurance cover for them.
We also recommend Buddies organise nanny insurance which they can secure through Nanny Insure http://www.nannyinsure.co.uk, which is a public and product liability for the nanny.