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Domestic workers are those engaged to provide services in a private residence. Examples of domestic workers include cleaners and nannies.

Over the years, those engaging domestic staff have often tried to persuade them that they are self-employed or encouraged them to provide their services through a service company of some kind to avoid having to get involved with the operation of PAYE.

The normal rules apply in deciding whether such workers are employed or self-employed (see the Employment status tests guidance note). There is a special rule which deems office cleaners to be employed earners for NIC purposes (see ESM4018), but this does not extend to domestic workers who are cleaners.

If the status tests establish that the worker is an employee, the person for whom they provide services is the employer and should register for PAYE if the employee is paid more than the NIC lower earnings limit (see the Overview of NIC Classes, rates and thresholds