The other route
Which scheme you would be on depends on where your company is based
If your company is outside the EU, the EEA and Switzerland, with no UK presence, the scheme is usually a DPNI, not an NI-only scheme. HMRC’s manual PAYE20100 lists “A foreign employer who has no address in the United Kingdom from which earnings are paid” among the cases a DPNI is for. A DPNI costs £157 a month. When the scheme is in the employee’s own name, the employee is our client and pays our fees. An employer that wants to cover the cost can add the amount to the employee’s pay, and the employee then pays us.
In the EU, the EEA or Switzerland. UK National Insurance is due on both sides, the employee’s and the employer’s. For an employer in the EU, HMRC’s manual PAYE20100 says the employer sets up “an NI only scheme rather than a DPNI scheme”, and the UK’s social security agreements with Switzerland and with Norway, Iceland and Liechtenstein put the employer in the same position. An NI-only scheme is in the employer’s name. An NI-only scheme costs £157 a month for one employee, and £150 a month plus £7 per payslip for two or more. Setting up is a one-off £750, however many employees the scheme covers, or £500 if you go ahead within two weeks of your quote.
Running UK PAYE in your own name instead. For a company outside the EU, the EEA and Switzerland: a company with no UK presence doesn’t have to run UK PAYE, but it can choose to run it in its own name. Then the company takes the employee’s income tax off their pay through its own payroll, and our fees are the company’s cost, not the employee’s. A UK PAYE scheme in the company’s own name starts at £225 a month plus £8 per payslip, and setting it up costs £350.
We will ask HMRC for the scheme that fits your facts, and they may suggest a different one once they have the full facts. One exception: if the employee works for a UK business, such as a UK client, that business may have to run PAYE and pay employer’s National Insurance itself. If you already have a UK company, see our note on payroll options for a UK subsidiary.
What stays with you on every direct route. A direct scheme does not make anyone else the employer, so the auto-enrolment duties stay with you. Our work on the workplace pension is included in the monthly fee, and we never charge extra for it. Each pay period we check which of your staff qualify, enrol those who do, deal with anyone opting in or out, and upload the contributions.