This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

PAYE Manual

Employer records: set up employer record: DPNI scheme - direct payment (tax and NIC) (Action Guide)

When you become aware that the need arises to set up an employer record with a DPNI scheme type, follow steps 1 - 11 below.

Setting up new employer records is a priority. Action should be taken within 2 days of notification that a new record is required.

The guide is presented as follows

Steps 1 - 2

Steps 3 - 4

Steps 5 - 7

Steps 8 - 10

Step 11

For details of how to access any of the Employer Business Service functions, use PAYE057.

Initial action

  1. Collect and review all the information provided. PAYE20040 provides full details of the information needed

  2. Satisfy yourself this type of scheme is required. More detailed advice is available at PAYE20020

Set up employer record

  1. Use Function EMPLOYER SET UP to create a new employer record

The function has been designed to follow a logical sequence and will not allow you to move on until all the mandatory fields have been completed.

The fields you must complete (as a minimum requirement) are

  • Employer Name
  • Business Address (by selecting the [Search] button to use Function ADDRESS SEARCH to trace and store an address in this protected field)
  • Nature of Business
  • Trade Prefix
  • Trade Classification
  • Scheme Type
  • Scheme Start Date
  • Responsible Office

However, you must record all relevant information held relating to the new employer to ensure that the employer record is as complete as possible. For further guidance see PAYE20040

  1. Make a note of the computer generated employer and Accounts Office reference

Note: When a new scheme has been set up on EBS you must ensure that a record has been created on ETMP before you proceed with any other action, such as COYO, dormancy and so on. This will normally be the next working day but may sometimes be longer.

Long name

If the name is too long to fit the maximum space available in Function EMPLOYER SET UP an abbreviation must be shown

  1. Contact the employer to agree the abbreviation to use
  • Enter the abbreviated name on the screen
  1. Select the field (box) Employer’s Name has been abbreviated in Function EMPLOYER SET UP

  2. Send a memo to Banking Operations to

  • State the office number, Accounts Office / PAYE employer references
  • Inform them that the abbreviated name signal has been set
  • State the employer’s full name

Clerical action

For each new scheme take the following action

  1. Issue form P24N-1 to notify the new employer of his or her employer and Accounts Office reference

  2. Use Function EMPLOYER NOTES to record your actions and place the post in the employer record pad

  3. Note the name and reference in the employer related electronic file ‘DC and DP cases’

New employer pack

  1. Arrange for a manual new employer pack to be issued

To see what literature is issued in the pack

  • Use PAYE056
  • In the Forms Index select ‘New Employer Packs’, and then
  • Scroll to the new employer pack for this scheme type