Simplified Deduction Schemes

A Simplified Deduction Scheme is for employers of personal or domestic employees, such as carers or gardeners etc, to deduct tax on a non-cumulative basis.

In all cases the net taxable pay (after allowances) for each employee must not exceed £160 a week (£700 a month). When these limits are exceeded a Simplified Deduction Scheme is not appropriate and the business should be registered as a sole trader.