PAYE20090 - employer records: set up employer record: DCNI scheme – direct collection (employee only NIC)

Commonly known as 'PAYE Direct Payments procedures'

A DCNI scheme type is used when direct payments of National Insurance (NI) only are to be made. Collection of the deductions is quarterly during the year. Types of individuals to which this may apply are as follows

• Employees whose earnings come from a series of short periods of employment with different employers, for example, certain workers in docks, ports and markets
• Employees who have no employer for PAYE purposes and cannot be dealt with under the Direct Payment (DP) arrangements
• Certain members of the reserve and auxiliary forces who receive taxable bounties
• Employees who normally work in more than one European Economic Area (EEA) country and who have to pay NICs in the UK on their foreign earnings under EC Regulations, but who do not have an employer in the UK
• Pensioners whose National Insurance retirement or Widows’ pension cannot be coded-in or covered by personal allowances
• Former DP cases where DP arrangements for tax have had to be cancelled

Taxpayers within these special arrangements are sometimes known as ‘DC cases’ and any tax that is due is collected through Self-Assessment.