Job Retention Scheme

Now that we are firmly into lock-down, it is of vital importance that we all make every possible effort not to leave our homes. Naturally, this puts nannies in a difficult position. Unless you are a key worker who cannot take time off work, your nanny should not be travelling to your home to work for the time being. Many people are choosing for their nannies to temporarily live with them so that they may continue to work without threat of increased exposure to the virus. If this option is available to you, and both you and your nanny are happy to do this, then please get in touch with us for guidance on how to make this transition. Otherwise, you may be looking to furlough your nanny via the Job Retention Scheme. Please see below some FAQs regarding this option. What is the Job Retention Scheme? This scheme has been put in place to protect employers facing difficulties funding their staff’s wages while they are unable to work. Employees who would otherwise be made redundant as a cause of this, are now able to receive 80% of their standard wages up to £2,500 per month funded by the government. The remaining 20% may be funded by the employer, but this is not mandatory. Who is eligible? If you are no longer able to provide work for your nanny due to these compromised circumstances, you may be eligible for the scheme. In order to qualify, your employee must have been on the payroll by the 28 th February 2020. Any staff who started after this date will unfortunately not qualify. If the Chancellor reviews this criteria further and makes any changes we will of course be the first to tell you. Please see this link for more information on eligibility: wage-costs-through-the-coronavirus-job-retention-scheme#employees-you-can-claim-for How does it work? You will pay your nanny as usual, and later reclaim 80% of their standard earnings via a new portal which has not yet been set up by HMRC. Earnings will be based on nanny’s average pay throughout this tax year, up to and including February. Whether you just want to pay the 80% or you would like to cover the difference yourself and pay in full, we will process your payroll accordingly and let you know just how much you will be able to claim back. This will equal 80% of nanny’s gross earnings + any employer national insurance that relates to the furloughed amount. If your nanny is currently enrolled in a pension scheme, then employer pension contributions up to 3% of the gross can also be reclaimed. How do I sign up? If you would like to furlough your nanny, please let us know the date from which this will start and we will submit your information to HMRC once the system has been set up. Please check that your contract includes a clause which allows for the employer to either introduce lay-offs, or short time working. The contracts which we provide our clients with include this in clause 15, so if you have signed a Payroll for Nannies contract then you will be covered. If you have sourced your contract externally and it does not include a temporary layoff/reduced working hours clause then you do not have the contractual right to impose the temporary layoff/reduced working hours/furlough. Therefore you would have to either send nanny home on full pay, introduce this clause to the contract via expressed agreement with nanny or look to terminate employment for those with less than two years' service. ​ When will I be able to claim back the money? The first payments are expected to be made by HMRC by the end of April once the portal is up and running. Please do not hesitate to get in touch if you have any questions or concerns, we are here to help; phone us on 01273 446595 or email

Our website is also being kept up to date with new information relating to the virus, please check our blogs for more details:

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