Hi,
I've recently started working for a company in denmark who has no presence in the uk. The position is full time, so from my reasearch I have found that a direct payment scheme is what I need to setup.
Unfortunatley, after contacting HMRC several times, I can't seem to find a clear answer on how to go about setting one up. Their website says contact your local tax office, however it seems impossible to find any contact details. I've rang the main centre multiple times, often sent down dead ends, and have sent letters off that I have had no reply to.
Can anbody shed any light on what I need to do? If I contact an accountant, is this something they can setup for me?
Any help is greatly appreciated.
Matt
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Replies (4)
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Reluctance
I have set up a couple of these for clients in the past but it seems as though the first people you will speak to at HMRC have often never heard of them and you have to battle your way through to find someone who understands what you are talking about. Not helped by the constant moving of offices by HMRC. Once you do find the right department, you will need to supply quite a bit of info to persuade them that you really do need a direct payment scheme.
Last time I dealt with one of these it was dealt with in Manchester - tel was 0161 261 3398 for the department - but it may well have moved again by now...
Good luck!
PM me if you get stuck.
DP(GEN) scheme
Here is some information about the DP (GEN) scheme; you need to ring the HMRC helpline to arrange for the scheme to be set up and to obtain the employers pack containing the forms/booklets that you need - I have supplied the telephone number too.
Hope it helps!
PAYE20100 - Employer records: set up employer record: DPNI scheme – direct payment (tax and NIC)
Commonly known as 'PAYE Direct Payments procedures'.
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 includeRoman Catholic PriestsClergy of the Church of IrelandOfficials whose earnings are made up mainly of fees paid by the public, for example, RegistrarsCertain employees of foreign and Commonwealth governments, for example, a British chauffeur on the staff of a foreign embassyAn individual, who is required to pay their own Tax and NI. These include employees ofA 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 paidMariners hired under offshore manning arrangements with no UK employer or host employer
The employee is responsible for paying the Tax and NI contribution deducted to Banking Operations.
Telephone line open from;
8.00am to 8.00pm Mon - Fri
8.00am to 4.00pm Sat
Telephone
0845 607 0143
The above may be incorrect
I was researching this and came across a reference to EC Regulation 883/2004 which changed the rules from 2010. Where the employer needs to provide for UK national insurance, they need to set up an NI only scheme which covers both employer and employee NI contributions. The employee needs to account for tax only either through a DPGEN tax-only scheme, or through self-assessment.
Resurrecting an old thread here, has anybody set these up in practise under the new rules?
Is it possible to set up just one scheme & accounts for both NI (e'e & e'rs) AND tax through the one scheme or are two separate schemes really required?
Also how do you actually register? We generally use one of the structured emails here:- http://www.hmrc.gov.uk/payerti/getting-started/register-by-email.htm
however these schemes don't fit well with any of the options.