Nanny Share Hours: How Two Families Split Time Fairly
A nanny share splits one nanny’s time (and her wage) between two families. Done right, you almost halve the cost of a nanny without losing care quality. Done badly, it’s a long series of awkward conversations about sick days and holidays. This guide covers how nanny share hours actually work, who counts as the legal employer, what to write into your contract, and how to track time so both families stay happy.
A nanny share is one of the best childcare deals going in the UK. Two families employ one nanny together, usually at one home, and split the cost. Your kids get a built-in playmate. The nanny earns more per hour than a sole-charge nanny would, because she’s looking after two sets of children. Everyone wins, on paper.
The catch is the admin. Two families, often two payslips, one set of hours that has to be split fairly, and every sick day or holiday becomes a small negotiation. This guide covers nanny share hours from the practical side: who counts as the employer, how to handle the split, what to put in writing, and how to track time so the share lasts longer than three months.
What is a nanny share, exactly?
A nanny share is an arrangement where one nanny is employed by two families at the same time, looking after children from both households. The nanny typically works at one of the two homes, and both families split her wage. The nanny is an employee, not self-employed, regardless of who pays her.
Most nanny shares involve two children of similar ages, one from each family. Some involve more, with two or three children per family. The nanny is at one home most of the time, often the family with the youngest child or the home with the most space. The other family drops their child off in the morning and picks up at the end of the day.
This isn’t a babysitting arrangement, and the nanny isn’t a freelance childminder. She’s employed by you, with the full set of employer responsibilities that come with that. If you’re unsure where the line sits, HMRC’s employment status guidance is the official reference.
Who is the legal employer in a nanny share?
Either both families are employers (joint employment, two payslips, two PAYE submissions), or one family is the legal employer and the other pays them a contribution. Both work legally, but they have different implications for payroll admin and government schemes. Pick before the nanny starts, not after.
Option 1: Both families are employers
Each family registers with HMRC and runs its own PAYE. The nanny ends up with two tax codes and two payslips, one from each family. This is the cleanest structure if both families want a direct employment relationship. It also makes Tax-Free Childcare and other schemes simpler, because each family has its own employer relationship with the nanny.
The downside is doubled admin. Two payroll services, two pension setups, two FPS submissions every month. Most families using this structure pick the same payroll service and let it handle the coordination.
Option 2: One employer, the other family contributes
One family is the legal employer, registers with HMRC, and pays the nanny’s full gross wage. The second family pays the first family their share as a childcare contribution. Simpler payroll, but the second family has no formal employment relationship with the nanny. That can make their Tax-Free Childcare claim harder to set up, so talk to your payroll service first.
If you want to understand the full payroll picture for either structure, our UK nanny payslip guide walks through what a household employer owes HMRC each month.
How should two families split the hours and cost?
Most nanny shares split costs 50/50 because both children are present for roughly the same hours. The cleaner approach is a hybrid model: 50/50 for shared hours, and an attendance-based or solo rate when only one child is being looked after. Pick the model upfront and write it into both contracts.
You have three realistic options:
- Flat split. Both families pay 50/50 regardless of attendance. Predictable, easy to administer, and the right choice if both children attend almost every day.
- Attendance-based. Each family pays for the hours their child was looked after. Fair, but it requires accurate per-child tracking, which is harder than it sounds when the kids spend most of the day together.
- Hybrid. Flat split for shared hours, plus a solo rate for the days when only one family’s child is present. This is what most working nanny shares settle into after a few months.
For a sense of the absolute numbers either way, run the figures on our nanny cost calculator. A nanny share at £18/hour gross between two families is roughly equivalent to each family paying £9/hour for a sole-charge nanny, plus your share of employer NI and pension.
What to put in writing
Two contracts. One with the nanny (or two contracts, depending on the structure), and one short side-letter between the families.
The nanny contract covers everything a normal employment contract would. Hours, location, gross hourly rate, holiday entitlement of 5.6 weeks minimum (gov.uk on holiday entitlement), sick pay, notice period, duties, and what happens if one family pulls out. It also names the legal employer or employers.
The side-letter between the families covers the awkward stuff that the nanny never needs to see. Who buys the snacks. Whose car seat is in whose car. What happens if the host family redecorates the kids’ play area without warning. It also locks in the cost-split model so you’re not renegotiating during a school holiday.
Most nanny share disputes come from misalignment between the two families, not from problems with the nanny. The side-letter prevents about 90 percent of them.
How do you track hours fairly between two families?
Track the hours once, in one place that both families can see. The nanny should log her total hours at the end of each day. If you’re using a hybrid cost model, also log which child was present. Reconcile totals monthly before any money moves between families.
The single biggest source of nanny share friction is one family quietly disagreeing with the hours for weeks before bringing it up. By then the gap is too big to discuss calmly, and both families feel ambushed. The fix is to make the hours visible and confirmed every month, not at the end of the share.
Practical setup
Option A: The nanny sends one daily message that both families see (a shared WhatsApp group works well) covering total hours and any per-child notes.
Option B: The employer family handles tracking and shares the monthly totals with the second family alongside the invoice for their share.
Whatever method you use, the nanny should confirm the monthly totals before any money moves. Our guide on tracking nanny hours without spreadsheets covers why the “scroll back through WhatsApp” approach fails at the end of every month.
One nanny, clear hours, one shared report.
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Try for free →Handling the awkward situations
One child is off sick
If your child stays home unwell but the nanny still cares for the other family’s child as normal, the nanny is still working her full hours. Your share doesn’t drop just because your child isn’t there. Pay as usual. The whole point of the share is reliable income for the nanny.
One family on holiday
Common approach: a reduced solo rate for the weeks one family is away. The family in town pays a bit more than half (because they’re getting sole-charge care) but less than a full sole-charge rate. Lock the number in advance. Deciding it during a holiday is too late.
The share ends
Most nanny shares last 12 to 24 months before one family’s circumstances change. Build in a notice period (one month is typical) and decide upfront whether the remaining family inherits the nanny at the full sole-charge rate or whether the contract ends entirely. Writing this down before the share starts removes the hardest conversation later.
Where nanny shares go wrong
Different parenting styles. One family is strict about screen time, the other lets the kids watch TV after lunch. The nanny is stuck in the middle. Talk about parenting philosophy upfront, not after the first disagreement.
Unequal commute burden. The non-host family does all the drop-offs and pick-ups. Over time, this gets resented. Build the commute split into the side-letter, including how it changes when one family moves house.
Cost creep. The nanny’s wage rises, employer NI changes, the pension contribution kicks in. The cost split needs to flex with these. Agree to review the total cost annually, not when you’re mid-tax-year.
No backup for the host family. If the host family goes on holiday or the host home is being renovated, where does the share happen? Have a fallback location agreed in writing. Most shares without one end during the first big renovation.
A nanny share is a great childcare arrangement when both families take the admin seriously. Two written contracts, one cost model, one place to track hours, one monthly reconciliation. Get those in place and you can almost forget about the share machinery and just enjoy the lower bill.
If you also want to use government childcare top-ups, read our Tax-Free Childcare guide for nannies. Both families in a share can claim it independently, provided the nanny is on the Ofsted Voluntary Register.
Frequently Asked Questions
Is a nanny share cheaper than a nursery in the UK?
For two children from the same family, often yes. For one child per family, a nanny share usually costs about the same as a nursery place but offers far more flexibility (your own home, your own routine, no nursery sickness cycle). The maths depends on your hourly rate and how many days a week the nanny works.
Can each family use Tax-Free Childcare in a nanny share?
Yes, if the nanny is on the Ofsted Voluntary Childcare Register and each family qualifies for Tax-Free Childcare. Each family runs its own TFC account and pays its share of the wage from that account.
What happens if one family pulls out of a nanny share?
Your contract should set a notice period, usually one month. After that, the remaining family either takes on the nanny at the full sole-charge rate or ends the contract entirely. Decide which it will be before the share starts, not when one family is already half-out.
Does the nanny get one payslip or two in a nanny share?
It depends on the structure. In joint employment, each family runs its own PAYE and the nanny gets two payslips. In single-employer arrangements, one family runs payroll and the nanny gets one payslip. Talk to your payroll service before choosing.
Can a nanny refuse a shared arrangement?
Yes. A nanny share is more demanding than sole-charge care because she’s looking after children from two families at once. Some nannies love it, others won’t consider it. Always raise the share idea at interview, not after she’s signed.