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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employer records: set up employer record: DOME scheme - domestic (simplified deduction scheme)

Prior to 5 April 2012 a domestic (DOME) scheme (sometimes referred to as a ‘Q’ scheme or Simplified deduction scheme) was used for employers of personal or domestic employees at the employer’s home.

Examples of this type of employee include

  • Nannies
  • Gardeners
  • Cooks
  • Maids
  • Chauffeurs

And

  • People employed to assist a disabled employer in their work or study, which the employer would not be able to carry out without the assistance of the personal employee

Under Regulation 34 HMRC allowed the use of the Simplified PAYE Deduction Scheme to deduct tax and NICs provided that all of the employees in the scheme were personal and domestic employees of the employer. In all cases the net taxable pay (after allowances) for each employee could not exceed £160 a week (£700 a month).

When these limits were exceeded a DOME scheme was no longer appropriate and the scheme type for the employer record was changed from 6 April 2014 to a P scheme type. See PAYE27027 for more details.

Features of DOME schemes

  • The code was operated on a week 1 / month 1 basis. Guidance on opening and maintaining the employee record can be found at PAYE73000 onwards
  • K codes could not be operated. Guidance on what to do when a K code is appropriate can be found at PAYE73030 
  • Employees within a DOME scheme had the ‘manual correspondence to employer’ indicator set on their PAYE Service record
  • Simplified Tables were used. The employer did not need to look up free pay
  • Payments were made to Banking Operations on a quarterly basis
  • Forms P6, P45 and P46 were not used. The employer was given a deduction card P12 showing the code and week 1 / month 1 free pay. DOME employers were unable to calculate the deduction due until they received cards P12, and employees did not obtain the normal ‘in-year’ benefits of a cumulative code. You must therefore process any request for a card P12 as priority