Help & Advice

  • Advice for nannies
  • Last updated 24 August 2023

Being paid cash in hand

As a nanny, you might be offered the option of being paid cash in hand, without the employer deducting taxes or providing a payslip.

While this might seem like a tempting prospect at first, there are several reasons why being paid cash in hand as a nanny is not a good idea. Here we will explore the reasons why being paid cash in hand as a nanny can be detrimental.

No access to employee benefits

When you are paid cash in hand, you are not entitled to any employee benefits such as sick pay, holiday pay, maternity/paternity/adoption pay or a pension. This means that if you fall ill or need to take time off, you may not be paid for the days that you miss. Similarly, when you retire, you may not have any savings to rely on. In the long run, this can leave you financially vulnerable.

Tax evasion and illegal activity

Being paid cash in hand can be a sign that your employer is engaging in tax evasion or other illegal activities. If you are being paid cash in hand, it is unlikely that your employer is declaring your income to the relevant tax authorities. This means that you may be unwittingly participating in illegal activity, which can have serious legal consequences.

Difficulty obtaining financial services

If you are being paid cash in hand, you may find it difficult to obtain financial services such as loans, mortgages, or credit cards. This is because many financial institutions require evidence of regular income, which is difficult to provide when you are paid cash in hand. This can limit your financial options and make it harder for you to achieve your financial goals.


In conclusion, being paid cash in hand as a nanny can be detrimental in several ways. It can leave you financially vulnerable, without legal protection, and limit your access to employee benefits and financial services.

If you are considering accepting a job as a nanny, it is important to ensure that you have a formal contract in place and are paid through legal channels. This will help to protect your rights and ensure that you are paid fairly for the work that you do.

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