How to Handle Nanny Bonuses Through Payroll
If you employ a nanny, you already know how important they are to your family’s routine. From early mornings to after-school pickups, they keep things running smoothly. So when the end of the year rolls around, many families ask:
Should we give our nanny a bonus—and how do we handle it through payroll?
Here’s what you need to know.
Do Families in the UK Usually Give Nanny Bonuses?
While nanny bonuses aren’t required by law, they’re common—especially around Christmas. Bonuses are a great way to show appreciation and build long-term trust.
You might also consider a bonus:
- After a busy stretch like school holidays or family travel
- On a work anniversary
- When your nanny takes on extra responsibilities
The timing doesn’t matter as much as the intention: showing you value their work.
How Much Is Normal?
There’s no set rule, but here are some common examples:
- One week’s pay for a full-time nanny
- A pro-rated bonus for part-time support
- Gift cards or smaller amounts if budget is tight
Whatever the amount, what counts is the gesture itself.
Should It Be Cash or a Gift?
Cash is popular—but a thoughtful gift can be just as appreciated. Some families combine both. Ideas include:
- A hamper filled with their favourite treats
- Spa or experience vouchers
- A handmade card or small gift from your children
- A paid day off
Tip: If a non-cash gift is under £50, isn’t cash or a voucher, and isn’t performance-based, it may qualify as a trivial benefit and be exempt from payroll reporting (according to HMRC rules).
Are Nanny Bonuses Taxable Through Payroll?
Yes. If you’re giving cash or anything considered income, it needs to go through your nanny payroll system.
This includes:
- Christmas bonuses
- Performance rewards
- Any other taxable income
Using a nanny payroll service like NannyPayPro? Let us know, and we’ll handle it. The bonus will be correctly added to their payslip and reported to HMRC—no guesswork required.
How to Make It Count
Delivery matters. Add a thank-you card or note. Even better—have the kids write something or draw a picture.
Just give your payroll provider a heads-up so it lands in the right pay period.
What If You Can’t Afford a Bonus?
Not every year comes with wiggle room. That’s okay. Appreciation doesn’t have to cost much.
Here are a few low-cost ideas:
- A handwritten thank-you letter
- Home-baked treats
- An extra afternoon off
- A thoughtful card from the children
The Bottom Line
A nanny bonus is a simple way to show thanks—and support long-term loyalty. Whether it’s a week’s wages or a small gesture, what matters is that you made the effort.
Need help processing a bonus through nanny payroll? Contact NannyPayPro—we make it easy, compliant, and stress-free.
