The ‘auto-enrolment’ of employees in pension schemes means people who employ nannies will have to fund their pensions, says the Financial Times.
The rules mean employers have to register and set up schemes for their employees or they face fines and penalties. Accountants said this would add £350 a year to the cost of employing a nanny in the current year, but because employer contributions rise from 1% to 3% of pay by 2017, the cost will quickly rise to £1,000 a year. Will people who employ nannies resort to paying them in cash? HMRC and the accountants say they won’t – well, they would say that, wouldn’t they?