PAYE20085 - employer records: set up employer record: DOME scheme – domestic (simplified deduction scheme)

A domestic (DOME) scheme (sometimes referred to as a 'Q' scheme or Simplified deduction scheme) is used for employers of personal or domestic employees at the employer’s home.

Examples of this type of employee include

• Nannies
• Gardeners
• Cooks
• Maids
• Chauffeurs

And

• People employed to assist a disabled employer in their work or study, which the employer would not be able to carry out without the assistance of the personal employee

Under Regulation 34 the responsible processing office may allow the use of the Simplified PAYE Deduction Scheme to deduct tax and NICs provided that all of the employees in the scheme are personal and domestic employees of the employer. In cases of doubt follow the Action Guide 'DOME Scheme' in this section.

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 DOME scheme is not appropriate and the scheme type for the employer record should be changed from the following 6 April to a P scheme type. See PAYE27027 for more details. Ensure that you invite the employer to contact any convenient office or BST if in any doubt about how to proceed.

Features of DOME schemes

• The code number is operated on a week 1 / month 1 basis. Guidance on opening and maintaining the employee record can be found at PAYE73000 onwards
• K codes cannot be operated. Guidance on what to do when a K code is appropriate can be found at PAYE73030
• Simplified Tables are used. The employer does not need to look up free pay
• Payments are made to Banking Operations on a quarterly basis
• Forms P6, P45 and P46 are not used. The employer is given a deduction card P12 showing the code and week 1 / month 1 free pay. DOME employers are unable to calculate the deduction due until they receive cards P12, and employees do not obtain the normal 'in-year' benefits of a cumulative code. You must therefore process any request for a DOME scheme and / or card P12 as priority
• All requests you receive from the Payroll Agent Nannytax to set up an employer record must be created using the Lothians Area Responsible Office ID (284601)