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How Do I Pay Tax and NI as a Nanny Abroad?

By: Helena Stratford - Updated: 1 Aug 2013 | comments*Discuss
Working Abroad As A Nanny Tax National


My daughter is about to take up a post as nanny for an army couple living on an army base in Germany. I have concerns about her tax and NI contributions. What should she do?

(M.M, 3 March 2009)


Usually, if you go to work abroad, HM Revenue & Customs will still treat you for tax purposes as a resident of the UK. So if you take a nanny job abroad, you will still be paying UK tax on any earnings you receive in another country.

If, as a nanny, you are going to work in another country in the European Economic Area (EEA), or Switzerland, you will continue your National Insurance Contributions (NIC’s) whilst you are away. The amount of contribution per month will vary according to whether you are employed (for instance by a family) or self-employed. If you are self-employed, continuing your NIC’s is a good idea if you do not intend to be away for an extended period of time and can also enable you to claim medical treatment and healthcare services.

If you have not yet left for abroad, contact HMRC or your local tax office and fill in form P85. This informs the Revenue that you intend to be out of the country and can help sort out any future tax issues.

If you work abroad for 12 months, you will need to obtain form E101 from Her Majesties Revenue and Customs (HMRC) to indicate that you are making compulsory National Insurance contributions and paying tax in the UK. You can apply for this form if you are self-employed or on behalf of your employers if you work as an employed nanny.

If you work for a second year abroad, you will be able to apply for a second form (form E102) to cover the second stint of up to 12 months.

However, if you are working abroad for over two years – and up to a maximum of five years – you will also need to complete form E101 (showing that your tax and NIC’s are being paid in the UK) and form E106 which provides a slightly different level of health cover.

If you are employed by a family who are taking you to work abroad with them, they will need to calculate your PAYE tax for the Revenue. This can be complicated and it would be wise to contact HMRC directly.

For more information, visit their website at: www.hmrc.gov.uk

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