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HMRC internal manual

PAYE Manual

PAYE operation: simplified deduction schemes: introduction

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

Employers of certain employees are allowed to operate a simplified form of PAYE. This involves a simplified procedure for deduction of tax, on a non-cumulative basis. NESI set up and Employer sections maintain employer records for simplified deduction schemes on the Employer Business Service (EBS) under scheme type DOME. Guidance is available to Employer sections in

  • ‘DOME scheme - domestic (simplified deduction scheme)’ at PAYE20085 
  • ‘Maintain DOME schemes’ at PAYE27010 

Note: With effect from 6 April 2012 HMRC will not accept any more schemes of this type. All employers will be registered as a standard P scheme and move onto Real Time Information (RTI) at 6 April 2013.

This section of the Manual gives advice to Employer Offices.

Under Regulation 34 HMRC may allow the use of the ‘Simplified PAYE Deduction Scheme’ to deduct tax and NICs provided that all of the employees in the scheme are personal and domestic employees of the employer and are employed

  • To assist a disabled employer with their business, profession or course of study, which the employer would not be able to carry out without the assistance of the employee


  • At the employer’s home to provide personal or domestic services to the employer or the employer’s family. For example, a gardener or nanny

Forms P45, P46 and other movements forms are not to be used for changes of employment if the employer is using the simplified deduction scheme.

Form P6 is not used. Card P12 is used instead. Issue of a fresh card P12 is necessary when the code is changed.

If the employer is receiving funds from both the Direct Payment Scheme and the Independent Living Fund, the payments should be brought together in a single scheme.