DPNI, DCNI schemes

More and more people are working remotely and come across opportunities to do that for oversees companies. If you chose to work for employer based overseas, with no presence in UK,

you will be obliged to pay income tax and national insurance (NI). As your employer is based overseas, it is your responsibility to run your own payroll.

You will likely need to use a DPNI or DCNI scheme. Once you have confirmed that you are eligible to use a DPNI scheme (something which we can help you establish) there are multiple requirements to fulfil .

Areas which will typically have an impact on the complexity of setting up the DPNI scheme correctly include where your employer is established – the rules are different depending on where in the world they are based, and what other income you are generating from assets and activities (both in the UK and overseas), to ensure you are paying the right level of tax, in the right country. HMRC will want confirmation that you are eligible to pay NI in the UK and that you are paying the correct amount.

We can help clients whose employers are based overseas to make sure their payroll submission is done in pound sterling, via a UK PAYE scheme, all PAYE liabilities are paid to HMRC and they are complying with UK tax laws .

Payroll set up, also involves real time information (RTI) submissions, which we can make for you.

If you are planning on relocating to the UK but your employer is based overseas and you think you may be caught by this problem, we are here to help . If you are coming to live in the UK for the first time, there may also be other tax issues to consider, such as the remittance basis.