Hi If you employ a nanny directly (i.e. not through an agency) and you are the principal employer then you need to set up a pension for the nanny and pay into it. Until April next year, you must pay 1% of the nanny's earnings between a lower and upper limit. Then it's 2% until April 2019 and 3% thereafter. The current limits are ?113 to ?865 a week. For example, if you pay ?200 in a week you would pay 87p (i.e. 1% of ?200 - ?113) into the pension. If you pay ?1,000 in a week, you would pay ?7.52 (i.e. 1% of ?865 - ?113). You would usually pay the contributions across monthly. You also need to deduct contributions from the nanny's pay (or pay them on their behalf if you are feeling generous). 1% until April 2018, then 3% until April 2019 and 5% thereafter. These are all minimum amounts. You and the nanny can pay more if you want. You can simplify things by using an agency (in which case you don't worry about any of this as you aren't the employer) or a payroll agent who will calculate the weekly pay and arrange the deductions. Of course, it adds to the costs. I think you need to pay holidays. Again, if you use an agency, you might find that they absorb that cost and only charge you for the time used. It also relieves you of some of the hassle of being an employer. Please treat this information as a brief idea of what you need to do. There are a lot of other considerations, some exemptions, and important rules about notifying the employee of your intentions re the pension. Hope this helps Nick