A Rocket House guide on babysitter taxes

Let’s be honest, taxes aren’t exactly the most thrilling topic, especially when you’re just getting started as a babysitter. You might be more focused on finding families, keeping the kids safe and happy, or saving up for something exciting. But if you’re earning money regularly, there’s one thing you shouldn’t ignore: babysitter taxes.

Before you panic or switch off, take a breath. This guide is here to walk you through everything you need to know about paying babysitter taxes in the UK. We’ll explain it in plain English, no complicated jargon, no judgement, and no stress. Think of it like a chat with someone who’s already figured it out and just wants to help you stay on the right side of HMRC (that’s the UK tax office, by the way).

Whether you’re doing a few hours here and there or working most weekends, we’ve got your back. Let’s break it down.

Do babysitters have to pay taxes?

Here’s the short answer: yes, sometimes. If you’re earning more than a certain amount each year, you may need to report it to HMRC and possibly pay tax.

Understanding self-employment

If you babysit for different families on your own schedule and they pay you directly, then guess what? You’re considered self-employed. That might sound official, but it just means you’re responsible for tracking your own income and sorting out your own tax.

You don’t need to panic if you’re just earning pocket money or occasional cash, you only start paying income tax if your total income is more than the personal allowance. As of the 2024/25 tax year, that allowance is £12,570. So if you earn less than that, you won’t pay income tax, but you might still need to register (more on that below).

• Quick check: If you earn more than £1,000 a year from self-employment (even if it’s under the personal allowance), you’ll usually need to register with HMRC.

Registering as self-employed with HMRC

So you’ve figured out that you’re earning regularly from babysitting. What next? It’s time to register as self-employed.

Here’s how to do it:

1. Go to the HMRC website

2. Create a Government Gateway account – This is where you’ll log in to manage your taxes.

3. Register as a sole trader – That’s the term HMRC uses for people working for themselves.

4. Wait for your Unique Taxpayer Reference (UTR) – You’ll need this to submit your tax return.

5. Keep an eye out for letters – HMRC will post you some important information, so don’t ignore your mail!

You should register by 5 October following the end of the tax year in which you started babysitting. For example, if you started in June 2025, register by 5 October 2026.

Keeping records and tracking income

This bit might feel boring, but it’s super important. Once you’re registered, HMRC expects you to keep track of what you earn.

What You Should Record:

• Date of each babysitting session

• Family name (first name is fine)

• Hours worked

• How much you were paid

• Any business-related costs (see “Expenses” section below)

You don’t need fancy software to get started. A simple Google Sheet or notebook can do the trick. There are also free or low-cost apps like QuickFile or Wave that help track income for self-employed people.

• Tip: Set aside 20–30% of your earnings in a separate account so you’re not caught off guard when it’s time to pay.

Filing a self-assessment tax return

Every year, you’ll need to submit a Self-Assessment Tax Return if you’re registered as self-employed.

Key info

• Deadline for online filing: 31 January each year (for income from the previous April–April tax year).

• Deadline for paper filing: 31 October (but most people file online, it’s easier).

When you log into your HMRC account, you’ll be guided through the form. You’ll report your income, list your expenses (if any), and HMRC will calculate if you owe anything.

You’ll need:

• Your income records

• Any receipts or expense logs

• Your UTR and National Insurance number

If you didn’t earn above the personal allowance, your bill might be £0—but you still need to submit the return to stay compliant.

What about national insurance?

Great question! Even if you don’t pay income tax, you may still need to pay National Insurance.

Two types to know

• Class 2 NI – Applies if your profits are £6,725 or more (2024/25 rates). It’s a small weekly amount (£3.45/week).

• Class 4 NI – Only kicks in if your profits go above £12,570. It’s a percentage of your earnings.

These contributions count towards things like your State Pension, so while they may not seem exciting now, they’re part of your future financial security. HMRC will let you know how much you owe when you submit your return.

Can babysitters claim expenses or deductions?

Absolutely, if you spend money to do your job, some of it might count as a business expense.

Common allowable expenses

• Travel (bus fare or petrol if going to and from jobs, not your daily commute)

• Babysitting supplies (toys, first-aid kit, etc.)

• Babysitting-related courses (like paediatric first aid training)

Keep receipts and make a note of what each expense was for. You’ll be able to subtract these costs from your total earnings when calculating profit, which can reduce how much tax you owe.

• Important: If you’re a parent paying a babysitter, you might be wondering, are babysitters tax deductible? In the UK, they generally are not. Childcare is only tax-deductible under specific schemes, like registered nurseries or nannies through childcare vouchers.

How The Rocket House can help

At The Rocket House, we don’t just connect you with great families—we want to see you thrive in your role as a babysitter. While we don’t offer support with things like taxes, we’ve gathered a few free and trusted tools below that might help you stay organised and informed:

If you're feeling overwhelmed, don't worry, we've gathered a few free and trusted tools to help you keep things simple and stress-free:

• HMRC: Register as Self-Employed – Step-by-step guidance from HMRC on how to register and what it means to be a sole trader in the UK.

• HMRC: Self Assessment Tax Returns – Everything you need to know about deadlines, forms, and filing your return.

• FreeAgent (HMRC-recognised accounting software) – Especially helpful for freelancers and side-hustlers; great for tracking income, sending invoices, and preparing for tax time.

• QuickFile – Another free UK-based accounting tool designed for small businesses and sole traders.

• MoneyHelper: Budget Planner – From the Money Advice Service; helps you get an overview of your income, spending and saving.

Taxes don’t have to be terrifying

Getting your head around babysitter taxes might feel overwhelming at first, but once you break it down, it’s really just about staying organised and being proactive. You’re running your own little business, and that’s something to be proud of!

Here’s a quick recap:

• If you earn more than £1,000/year, register as self-employed.

• Track your income and any work-related expenses.

• File a Self-Assessment Tax Return by 31 January each year.

• Pay National Insurance if you pass the threshold.

• Save your receipts and don’t be afraid to ask for help.

Looking for more advice, tools and support on your babysitting journey? Sign up to The Rocket House and explore our growing library of resources to help you thrive, not just on the job, but behind the scenes too. You’ve got this, and we’ve got your back.