PAYE20100 - employer records: set up employer record: DPNI scheme – direct payment (tax and NIC)
Commonly known as 'PAYE Direct Payments procedures'.
You will need to set up a new employer record with a DPNI
scheme type where normal PAYE procedures are unsuitable.
The employee will be responsible for the deduction of their
own Income Tax and employee’s share of NI
contributions.
The following criteria may apply
- Certain types of employees or office holders, these include
- Roman Catholic Priests
- Clergy of the Church of Ireland
- Officials whose earnings are made up mainly of fees paid by the public, for example, Registrars
- Certain employees of foreign and Commonwealth governments, for example, a British chauffeur on the staff of a foreign embassy
- An individual, who is required to pay their own Tax and NI. These include employees of
- A foreign embassy or consulate which has refused to operate PAYE
And
- A foreign employer who has no address in the United Kingdom from which earnings are paid
- Mariners hired under offshore manning arrangements with no UK employer or host employer
Note: Employer units must not set up new employer
records using the scheme type DPNI for employees working as carers.
Instead the employer records must be set up using scheme types DOME
(where the criteria apply) or P.
The employee is responsible for paying the Tax and NI
contribution deducted to Banking Operations.
