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HMRC internal manual

PAYE Manual

Coding: coding: general principles: personal and domestic employees

Note: DOME schemes became standard P schemes from 6 April 2014. This guidance refers to all years up to and including 2013-14.

Prior to 5 April 2012 people who had personal and domestic employees, such as nannies, gardeners, cooks, maids and chauffeurs, were able to use a simplified deduction scheme when taxing their payments. This simplified scheme meant the employer did not have to follow the normal PAYE procedures. With effect from 6 April 2012 HMRC have not accepted any more schemes of this type. All employers have been registered as a standard P scheme and moved onto Real Time Information (RTI) at 6 April 2013. Any of these schemes remaining at 6 April 2014 (paper filers) have been converted to P schemes.

Under this type of scheme we issued the employer with a Simplified Deduction Scheme card P12 for each employee. This card tells them the amount of `free pay’ to be taken into account. The P16 notes told the employer how much National Insurance and PAYE income tax to deduct and how to complete the card P12. The P16 notes told the employer how much tax to deduct when code BR is issued.

More detailed advice is available at PAYE73001 onwards.