Cash In Hand
All workers earning money for doing a job, full time, part time, temporary or on a casual basis have a legal obligation to pay Tax and National Insurance. Employers, including those of nannies, are required by law to make the deductions from the employee’s pay and pay this to the government on their behalf. Not to do so is considered 'PAYE fraud' and HMRC are becoming increasingly vigilant in this, particularly with the introduction of Real Time Information. If an employer is caught paying cash in hand, you are putting yourself at risk of substantial fines.
Employees who accept cash in hand payments risk losing employment rights such as Statutory Maternity Pay and Statutory Sick Pay and could be called upon to pay the back-dated Tax and National Insurance Contributions.
If you have not recieved payslips from your employer showing the breakdown of your pay then you should raise this with them and suggest that they register with a service such as ourselves to ensure that this is being done correctly.
By not declaring your pay to HMRC your employers are breaking the law, but in addition to this you as an employee are losing out on your right to things such as Statutory Sick Pay and Statutory Maternity Pay amongst others.
It may just be that your employers did not realise that they were meant to be doing this for you and so a gentle nudge from you with the right information will show them that you are a conscientious worker and that you know what you are doing, most employers who do not declare their employees pay do not do so out of malice but out of lack of understanding. If you tell your employer about needing to declare your income and they then refuse to register you properly and pay your taxes you will have to make a tough decision as to whether you wish to stay working for somebody who does not respect you enough to do this and is willing to risk not only fines for themselves but also for you.