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UK PAYE for employees of overseas organisations

DPNI & DCNI Payroll.

UK tax and National Insurance, sorted — without becoming a payroll expert yourself.

If you live and work in the UK but are employed by an overseas organisation that has no UK payroll, you can be left responsible for unfamiliar UK payroll obligations. A DPNI or DCNI arrangement is the recognised route for reporting that pay to HMRC.

We calculate your UK payroll, file the required RTI reports, issue recognised payslips and tell you exactly what to pay HMRC and when. Whether DPNI or DCNI is appropriate depends on your circumstances — we confirm that with you before you commit.

Clear pricing: £195 + VAT standard set-up and £45 + VAT a month for monthly payroll, with separate tiers for fortnightly and weekly pay.

Book a Free Consultation How It Works
  • HMRC compliant
  • RTI filed for every pay event
  • Clear payment instructions
  • From £45 + VAT / month

Who this service is for

If you live or work in the UK and your employer is established overseas with no UK office or payroll, the UK payroll obligations can land with you rather than with your employer.

This is a niche corner of the UK tax system, and HMRC's standard online employer registration won't work. We handle the lot — from explaining how the scheme is set up, through to running your payroll pay period after pay period. The service isn't automatically suitable just because an employer is overseas, so we check the facts before recommending a route.

UK-based employee of an overseas company

DPNI or DCNI may suit you if…

  • You live and work in the UK and are UK tax resident
  • Your employer is established overseas with no UK office, branch or UK payroll
  • Your employer cannot operate UK PAYE on your salary
  • You remain an employee — you're not self-employed or contracting
  • You want UK Income Tax and NI handled every pay period — not as a year-end shock
  • You'd like P60-style records for mortgages, tenancies, or your tax return
Talk to a specialist

Two distinct arrangements

DPNI — or DCNI?

These are related but formally distinct HMRC arrangements — DCNI isn't simply a version of DPNI. Which one is appropriate depends on your employer, your circumstances and HMRC's requirements.

DPNI — Income Tax and NI

The direct-payment arrangement generally used where you are responsible for both PAYE Income Tax and primary Class 1 National Insurance. Payroll calculations and RTI reporting are still required — you simply make the resulting payment to HMRC yourself.

  • Predictable deductions each pay period
  • Liability largely settled as you go
  • Standard year-end payroll documentation
Plan for the tax bill

DCNI — National Insurance only

The direct-collection arrangement used in relevant cases where employee's National Insurance is dealt with through payroll but Income Tax is handled separately — commonly through a Self Assessment tax return.

  • NI dealt with through payroll
  • Income Tax via Self Assessment
  • We help you estimate the tax in advance

If DCNI applies, set money aside as you go — we'll tell you roughly how much, so the year-end Self Assessment isn't a surprise. Self Assessment is a separate service, quoted before it starts.

Simple, transparent pricing

DPNI & DCNI service fees

A one-off set-up, then a recurring fee based on how often you're paid. Every fee below excludes VAT unless the VAT-inclusive figure is shown alongside it.

Initial fit check

Free

Up to 20 minutes. A high-level discussion of the facts and the likely route, so you know where you stand before spending anything.

Set-up

£195 + VAT

£234 inc VAT · one-off

Onboarding, scheme configuration, your GBP conversion basis agreed and your first payroll run set up correctly from day one.

Ongoing payroll — priced by pay frequency

Every pay event needs its own calculation, check, RTI filing and payslip, so monthly clients don't subsidise those who need 26 or 52 runs a year.

Most common

£45 / month + VAT

Monthly or four-weekly pay

£54 inc VAT · up to 13 scheduled runs a year

Works out at about £45 a payroll run

Get Started

£65 / month + VAT

Fortnightly pay

£78 inc VAT · up to 26 or 27 scheduled runs a year

Works out at about £30 a payroll run

Get Started

£100 / month + VAT

Weekly pay

£120 inc VAT · up to 52 or 53 scheduled runs a year

Works out at about £23 a payroll run — our best rate per run

Get Started

What every tier includes

  • Review of the pay information you supply for the period
  • Payroll calculation and quality check
  • RTI filing for every included pay event
  • Electronic payslip each pay period
  • HMRC payment amount, deadline and reference
  • Cumulative and year-to-date figures maintained
  • Routine tax-code processing, plus up to two routine HMRC coding notices a service year
  • A straightforward cash bonus in a normal scheduled run
  • Reasonable routine email support explaining your payroll output
  • Final RTI processing and standard year-end payroll documentation

Routine support means explaining the payroll produced under the agreed facts. It isn't unlimited advice, and it doesn't cover new tax research, document or contract review, or written technical opinions.

Two prices, and that's it — a one-off set-up, then your monthly fee. Suitability for DPNI or DCNI depends on the facts, so if anything about your situation means the standard set-up won't cover it, we'll tell you on the free fit check — before you commit to anything.

Our step-by-step process

How DPNI & DCNI works with No Worries

From getting your scheme in place with HMRC to a settled routine every pay period. You always know what's happening, what's needed from you, and what to expect from HMRC.

Getting the scheme in place is the long pole

HMRC's registration timescales vary and are outside our control — in our experience it has taken anywhere from a few working days to a couple of months. The sooner we start the conversation, the sooner your first compliant payroll runs, so get in touch now even if you don't need payroll for a while.

1

Free initial fit check

A free 20-minute chat to confirm your situation — where your employer is based, when you started working in the UK, your gross salary, and how often you're paid. We identify the likely route at a high level, tell you whether DPNI or DCNI looks appropriate, and confirm whether the standard or complex set-up applies before you commit.

2

Get the scheme in place with HMRC

These schemes can't be set up via the standard online employer registration. You call HMRC's Employer Helpline on 0300 200 3200 and explain that you need a DPNI (or DCNI) PAYE scheme in your own name. We give you the exact wording and the information HMRC will ask for. HMRC then post you a PAYE reference and an Accounts Office reference. We can't promise how quickly HMRC will act, but we'll keep you on track throughout.

3

One-off set-up on our system

Once your references arrive, we complete identity and AML checks, onboard you onto our payroll system under your PAYE reference, agree the salary currency and the GBP conversion method we'll apply consistently, capture your tax code and current-year opening figures, and run the first payroll calculation — aligned with HMRC's rules from day one.

4

Send us your pay details each period

Each time you're paid, you forward us your overseas payslip or confirm your gross salary for the period. The easiest option is just to auto-forward your payslip to us — no extra paperwork on your side. We ask for complete payroll inputs at least three UK working days before payday; late or changed information may delay processing and can attract a correction-run fee.

5

We run UK payroll & file RTI

We convert your salary to GBP on the agreed basis, calculate what's due for the period — UK Income Tax and Class 1 employee's NI under DPNI, or employee's NI under DCNI — update your year-to-date figures, and file the Real Time Information (RTI) submission with HMRC under your PAYE reference.

6

Clear payment instructions to HMRC

Each period you'll get your payslip and a clear summary showing how much is due, the deadline, and the reference to use. You pay HMRC directly — we never handle tax payments. If your pay, tax code, or circumstances change, we adjust the payroll in the relevant period. We acknowledge routine messages within one UK business day.

7

Year-end — included in the recurring fee

Final RTI processing and a P60-style summary of your pay and deductions are part of the recurring service, not an extra — useful for mortgage applications, tenancies, and Self Assessment returns. We're on hand throughout to explain payslips and HMRC payments in plain English.

What we need from you

A short list, then we do the rest

To keep your DPNI payroll running smoothly, we just need a handful of things from you on an ongoing basis.

PAYE references

Your DPNI PAYE reference and Accounts Office reference once HMRC have issued them.

Each pay period's details

Weekly, fortnightly, four-weekly or monthly — ideally just auto-forward your overseas payslip to us each time you're paid, at least three UK working days before payday.

Tell us about changes

Salary, bonuses, benefits, or significant changes in your working pattern or residence status — let us know so we can adjust the payroll.

Forward HMRC notices

If HMRC send you any notices that affect your tax code or PAYE position, share them with us so we can keep your records aligned.

Honest scope

What's not included

The set-up and recurring fees above cover getting your scheme in place and running your regular payroll. The items below sit outside that scope — we can usually help, but they're scoped and quoted separately so there are no surprises.

UK Self Assessment tax return

Self Assessment is a separate engagement under our standard Personal Tax fees, from £145 + VAT. DCNI clients and some DPNI clients will need a return depending on their circumstances — we'll confirm the scope and the fee before starting.

Pension auto-enrolment

DPNI schemes typically don't trigger auto-enrolment duties, but if your situation means a workplace pension is needed (or a personal pension is preferred), we'll point you to the right route and quote any administration separately.

Historic corrections & back-payroll

If you've already been paid for months (or years) before joining us — or earlier filings need amending — reconstructing back-payroll and filing earlier-year RTI corrections sits outside the standard set-up. We'll look at what's involved and quote it as a one-off before starting.

Complex overseas pay & specialist advice

Equity (RSUs, options, ESPP), tax equalisation, more than one employer or salary currency, benefits in kind, residence, split-year, treaty or social-security analysis, employment status and IR35 all sit outside payroll processing. We'll review what's involved and agree a price with you before any of it starts.

Not sure which of these apply to you? Mention them on your free consultation call — we'll tell you what's needed and what it would cost before you commit.

Frequently Asked Questions

Common questions about DPNI schemes and how the service works.

They're specialist UK payroll arrangements that may apply when you work in the UK for an overseas employer with no UK presence that doesn't operate ordinary UK PAYE. DPNI is the direct-payment arrangement generally used where you're responsible for both PAYE Income Tax and primary Class 1 National Insurance. DCNI is the direct-collection arrangement used in relevant cases where employee's National Insurance goes through payroll but Income Tax is handled separately. They're related but formally distinct — DCNI isn't simply a type of DPNI. Either way you remain employed by the overseas organisation; the scheme is just the recognised route for reporting that pay to HMRC. We don't promise eligibility until we've reviewed the facts.
These schemes can't usually be set up using HMRC's standard online "register as an employer" form. Instead, call HMRC's Employer Helpline on 0300 200 3200 and explain that you need a DPNI (or DCNI) PAYE scheme in your own name. HMRC may register the scheme during the call or arrange a follow-up with a specialist team, then post you your PAYE reference and Accounts Office reference. We give you the exact information and wording HMRC will need — but HMRC's timescales are outside our control, so we can't promise how quickly they'll act.
DPNI generally deals with both PAYE Income Tax and employee's National Insurance through the direct-payment payroll arrangement. DCNI generally deals with employee's National Insurance only, with Income Tax commonly handled separately through Self Assessment. Which one is appropriate depends on the employer, your circumstances and HMRC's requirements. If DCNI applies to you, set money aside for the eventual tax bill — we'll help you estimate it.
No. We calculate the tax and NI due, file the RTI submission with HMRC, and tell you exactly how much to pay, when, and the reference to use. The actual money is always paid directly from you to HMRC — we never handle tax payments on anyone's behalf.
As part of set-up we agree the salary currency, the exchange-rate source and the conversion date. We then apply that convention consistently, so it's defensible to HMRC and easy for you to follow on every payslip. Additional salary currencies or a second overseas employer sit outside the standard service and are quoted separately.
Often, yes — but it's never included in the payroll fee. Under DCNI the Income Tax piece is settled through Self Assessment after the tax year ends, and even under DPNI a return may still be needed depending on your wider circumstances. We can prepare and file it as a separate engagement under our standard Personal Tax fees, from £145 + VAT. Because foreign income is involved, the complex-income surcharge normally applies — we'll confirm the exact fee with you before starting.
Salary changes, bonuses, benefits, residence-status changes — just let us know and we'll adjust the payroll in the relevant period. The same applies to any HMRC notices that affect your tax code; forward them on and we'll update your records. Routine tax-code processing and HMRC coding notices are part of the monthly fee, as is a straightforward cash bonus paid through a normal scheduled run. There's no menu of small add-on charges to worry about.
Yes, you can — HMRC's Basic PAYE Tools is free and will technically run a DPNI payroll. The trade-off is what sits on your shoulders: installing and updating the desktop software each tax year, manually converting your overseas salary to GBP every pay period, filing the RTI submission on time, generating your own payslips, tracking year-to-date figures, and keeping on top of every tax-code notice HMRC posts you. Get a deadline wrong and there's a penalty; get a calculation wrong and you'll be unpicking it months later. From £45 + VAT a month we run all of that for you on commercial payroll software, you get a proper UK payslip each pay period (the kind mortgage lenders and letting agents actually recognise), and we give you one clear figure to pay HMRC.
Each pay event needs a separate payroll calculation, check, RTI filing and payslip. A monthly client normally has 12 runs a year, against roughly 26 fortnightly or 52 weekly. Pricing by frequency means monthly clients aren't subsidising the clients who need four times the work.
Usually yes, subject to reviewing the records. Catching up pay periods from before you joined us sits outside the standard set-up, so we'll look at what's actually involved and give you one clear one-off price before we start. Bring it up on the free fit check and we'll tell you straight away where you stand.
No. We provide specialist payroll calculation, reporting and support. We don't become your employer and we don't provide a full Employer of Record service — where the arrangement is suitable, you stay employed by your overseas organisation. In a qualifying DPNI or DCNI arrangement the treatment can differ materially from an umbrella arrangement, including how employer costs are handled, but we confirm the appropriate route only after reviewing the facts. If an umbrella is the better fit, we'll say so — see our umbrella service.
Two things: a one-off set-up of £195 + VAT (£234 inc VAT), then your monthly fee — £45 + VAT for monthly or four-weekly pay, £65 + VAT for fortnightly and £100 + VAT for weekly. That's the lot. Self Assessment, if you need it, is a separate engagement from £145 + VAT. See the pricing section.

Explore more

You might also be interested in

Personal Tax

Self Assessment tax returns from £145 + VAT — often needed alongside your payroll, especially under DCNI.

Disclosure Service

Got historic overseas income that should have been declared? Our specialist HMRC disclosure service brings past affairs up to date.

Talk to us

Not sure whether DPNI or DCNI is right for you? A free 20-minute fit check will tell you straight whether this is the right route.

UK PAYE, sorted.
Without the fuss.

Tell us where your employer is based, when you started working in the UK and how often you're paid. We'll explain the likely next step and confirm whether the standard or complex set-up applies — before you commit to anything.

Book a Free Consultation Call Us

Prefer to talk? Call us on 020 7731 1117