FAQ
DPNI questions overseas employers ask us
Is a DPNI scheme actually legal and recognised by HMRC?
Yes — it's HMRC's own mechanism for exactly this situation, not a workaround. DPNI schemes are documented in HMRC's PAYE Manual at PAYE20100 (and DCNI at PAYE20091) — check them yourself on GOV.UK. A specialist but completely standard arrangement.
What's the difference between DPNI and DCNI?
Both are "direct payment" schemes. In broad terms, DPNI covers Income Tax and National Insurance together; a DCNI scheme applies where only National Insurance is operated at source. Which one fits depends on your company's exact position — confirming this is step one of our setup, so you never apply for the wrong scheme.
Why can't we just register online like a normal employer?
The standard online employer registration assumes a UK presence, so HMRC handles direct payment schemes manually through its specialist NIC & Employer Office. That's why applications by employers themselves often bounce back and forth for weeks — the form isn't built for your situation, and the right route is a correctly prepared manual application.
How long does it take?
Our side moves in days: we reply within one UK business day and typically submit the application within 2–3 business days of having your details. HMRC's manual processing then typically takes 4–8 weeks (there's no official published timescale — this reflects what practitioners commonly see, and it can occasionally run longer). Your employee can usually start before the references arrive — see the timeline above, and we'll confirm the approach for your start date.
Do we still pay employer National Insurance?
Where it's due, yes — a DPNI scheme isn't a way to avoid UK NI; it's the correct way to account for it. We calculate exactly what's owed each period and tell you what to pay and where. Use our employer cost calculator to estimate the total cost of your UK hire.
What about a UK pension for the employee?
UK auto-enrolment duties can still apply to a UK-based worker even with an overseas employer. We assess the position properly, and where duties apply we set up and run the pension alongside the payroll.
We already have a DPNI scheme — can you just take it over?
Yes. If a previous adviser set up the scheme, we take over the running of it — references stay the same, nothing is re-registered, and there's no charge for the handover itself.