Paying yourself from abroad
The same UK rules apply wherever the director lives: a s455 charge on amounts outstanding at the year end and a benefit-in-kind charge on cheap or.
Short answer
The mechanics of a director's loan account do not change because the director is non-resident. Money taken beyond salary and declared dividends is a loan from the company, triggering a s455 corporation tax charge if unpaid nine months after the year end, and a benefit-in-kind charge on cheap loans over £10,000.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityThe mechanics of a director's loan account do not change because the director is non-resident. Money taken beyond salary and declared dividends is a loan from the company, triggering a s455 corporation tax charge if unpaid nine months after the year end, and a benefit-in-kind charge on cheap loans over £10,000.
Why non-residents use loan accounts anyway
The cost of getting it wrong
Because cross-border payments can be slow to arrange and dividends need reserves and paperwork in place first, some non-resident directors draw funds informally through the loan account and formalise them as salary or dividend later in the year.
This is fine as a timing tool, but the loan account must still be tracked accurately, since HMRC treats it as a real liability from the company to the director regardless of where the director is based.
An overdrawn loan account left unpaid triggers s455 tax at the dividend upper rate on the outstanding balance, refundable only once the loan is repaid, and this refund can take longer to reclaim if the company later has cash flow pressure.
A P11D benefit-in-kind charge also applies to the director personally on cheap or interest-free loans over £10,000, so the safest approach is to clear or formalise the account before the year end wherever possible.
Our fixed monthly packages for a UK limited company start at £89 plus VAT and run to £169 and £289 plus VAT as bookkeeping, VAT, payroll and reporting are added. One-off filings are sold at fixed prices, and the Companies House fees we pay for you are charged at cost with no VAT added. Overseas owners are quoted on exactly the same published prices as UK-resident clients.
Rates, thresholds and deadlines here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
Primary references
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We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
No, the charge applies to the company regardless of the director's residence.
Yes, a repayment into the company's UK account is treated the same as any other repayment.
Yes, the company still reports it on a P11D and it can affect the director's UK tax position.
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