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UK PAYE for overseas employees

DPNI Payroll Service.

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 company that has no UK payroll, you are responsible for paying your own UK Income Tax and employee's National Insurance to HMRC. A Direct Payment (DPNI) PAYE scheme is the official route for doing exactly that.

We guide you through registering your DPNI scheme with HMRC, run your monthly UK payroll, and tell you exactly what to pay HMRC and when. You stay compliant, with no surprises and no jargon.

Book a Free Consultation How It Works
  • HMRC compliant
  • Monthly RTI filed for you
  • Clear payment instructions
  • From £50 / month

Who this service is for

If you are tax resident in the UK and your employer is based overseas with no UK office or payroll, the rules say you — not your employer — have to operate UK PAYE on your own salary.

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 to register, through to running your payroll month after month.

UK-based employee of an overseas company

A DPNI scheme is for you if…

  • You live and work in the UK and are UK tax resident
  • Your employer is based overseas and has no UK office or branch
  • 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 monthly — not as a year-end shock
  • You'd like P60-style records for mortgages, tenancies, or your tax return
Talk to a specialist

Two flavours of DPNI

Tax & NI — or NI Only?

When HMRC sets up your DPNI scheme, they decide which version applies. Here's what each one means in practice.

Tax & NI (most common)

Both UK Income Tax and employee's National Insurance are calculated and paid through PAYE each month. By the end of the tax year your liability is largely settled.

  • Predictable monthly deductions
  • No big bill at year-end
  • P60-style summary at year-end
Plan for the tax bill

NI Only

Only employee's National Insurance is paid through the DPNI scheme each month. UK Income Tax is settled separately, after the tax year ends, through a Self Assessment tax return.

  • NI paid monthly via DPNI
  • Income Tax via Self Assessment
  • We help you estimate the tax in advance

If NI Only applies, set money aside as you go — we'll tell you roughly how much, so the year-end Self Assessment isn't a surprise.

Simple, transparent pricing

DPNI service fees

A one-off set-up, then a small monthly fee. No hidden charges.

One-off set-up

£165 + VAT

One-off set-up

Onboarding and configuration of your DPNI payroll on our system.

  • Confirm your situation & pay frequency
  • Configure DPNI on our payroll system
  • Agree GBP reporting basis
  • First payroll run aligned to HMRC rules
  • Guidance on registering with HMRC if needed
Get Started
Ongoing

£50 / month + VAT

Ongoing monthly payroll

Charged from the first month we process a payroll for you.

  • Monthly payroll calculation
  • Real Time Information (RTI) filed with HMRC
  • Payslips and clear payment instructions
  • Year-to-date figures kept current
  • Tax-code and circumstance changes handled
Get Started

Need a UK Self Assessment tax return as well? Available as a separate service under our standard Personal Tax fees.

Our step-by-step process

How DPNI works with No Worries

From registering your scheme with HMRC to a smooth monthly routine. You always know what's happening, what's needed from you, and what to expect from HMRC.

HMRC takes 6–8 weeks to set up a Direct Payment scheme

Registration is the long pole — the sooner we start the conversation, the sooner your first compliant payroll runs. Get in touch now even if you don't need payroll for a couple of months.

1

Initial conversation

A quick chat to confirm your situation — when you arrived in the UK, who your overseas employer is, your gross salary, and how often you're paid. We tell you what HMRC will need and the quickest path through.

2

Register the DPNI scheme with HMRC

DPNI 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 Direct Payment (DPNI) 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, usually within a few working days.

3

One-off set-up on our system

Once your references arrive, we onboard you onto our payroll system under your DPNI PAYE reference, agree how your overseas salary will be reported in GBP, and run the first payroll calculation under your scheme — aligned with HMRC's rules from day one.

4

Send us your monthly pay details

Each time you're paid, you forward us your overseas payslip or confirm your gross salary for the month. The easiest option is just to auto-forward your payslip to us — no extra paperwork on your side.

5

We run UK payroll & file RTI

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

6

Clear payment instructions to HMRC

Each month you'll get a clear summary showing how much tax and NI 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 month.

7

Year-end summary & ongoing support

At the end of each UK tax year we provide a P60-style summary of your pay and deductions — useful for mortgage applications, tenancies, and Self Assessment returns. We're always on hand 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, bi-weekly or monthly — ideally just auto-forward your overseas payslip to us each time you're paid.

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 fees above cover DPNI registration guidance and monthly payroll. The items below sit outside that scope — we can usually help, but we'll quote them separately so there are no surprises.

UK Self Assessment tax return

If your scheme is NI Only, or your wider circumstances mean you need to file a Self Assessment, we can prepare and submit it under our standard Personal Tax fees.

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, filing earlier-year RTI corrections and dealing with HMRC on your behalf is quoted as a one-off based on the work involved.

Complex overseas pay

Equity (RSUs, options, ESPP), bonuses with tax-equalisation, multi-country split-year arrangements, employer-paid benefits in kind, or treaty-based reliefs all need additional analysis. We'll review what's involved and quote on top of the standard monthly fee.

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.

A Direct Payment (DPNI) scheme is a special type of PAYE arrangement where you, as the employee, are responsible for deducting UK Income Tax and employee's National Insurance from your salary and paying it to HMRC. It's typically used where your employer is based overseas with no UK presence, so they can't operate UK PAYE for you. You remain employed by the overseas company — the DPNI scheme is just the route for reporting that income to HMRC.
DPNI 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 Direct Payment (DPNI) PAYE scheme in your own name. HMRC may register the scheme during the call or arrange a follow-up with a specialist team. They'll then post you your PAYE reference and Accounts Office reference, usually within a few working days. We give you the exact information and wording HMRC will need.
Most DPNI schemes deduct both UK Income Tax and employee's National Insurance through PAYE each month. In some situations HMRC sets the scheme up as NI Only — National Insurance is paid each month, but Income Tax is settled after the year-end through Self Assessment. If NI Only 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 how your overseas salary will be reported in GBP for UK payroll purposes. We'll explain the basis we use so it's consistent, defensible to HMRC, and easy for you to follow on each month's payslip.
Often, yes. If your DPNI scheme is NI Only, the Income Tax piece is settled through Self Assessment after the tax year ends. Even on a full Tax & NI scheme, a Self Assessment may still be needed depending on your wider circumstances. We can prepare and file your UK personal tax return as a separate service under our standard Personal Tax fees.
Salary changes, bonuses, benefits, residence-status changes — just let us know and we'll adjust the payroll in the relevant month. The same applies to any HMRC notices that affect your tax code; forward them on and we'll update your records.
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 each month, 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. For £50 + VAT a month we run all of that for you on commercial payroll software, you have proper UK payslip each pay period (the kind mortgage lenders and letting agents actually recognise), and give you one clear figure to pay HMRC.
A one-off set-up fee of £165 + VAT, then £50 + VAT per month for ongoing payroll, RTI submissions, payslips and payment instructions. Personal tax returns, if required, are charged separately under our standard personal tax fees.

Explore more

You might also be interested in

Personal Tax

Self Assessment tax returns from £145 + VAT — ideal alongside your DPNI scheme, especially if it's NI Only.

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 if a DPNI scheme is right for you? A short, no-obligation chat will tell you straight whether this is the right route.

UK PAYE, sorted.
Without the fuss.

Working in the UK for an overseas employer doesn't have to mean wrestling with HMRC. We guide you through registration, run your monthly payroll, and keep you compliant — while you stay focused on the job.

Book a Free Consultation Call Us

Prefer to talk? Call us on 020 7731 1117