Paying yourself from abroad
Disregarded income caps UK tax on certain non-residents' UK income, including dividends, so they generally pay no further UK tax on them beyond notional tax.
Short answer
Disregarded income rules limit a non-UK resident's UK Income Tax liability on specified income types, including UK company dividends, to the amount of any notional UK tax already treated as deducted. In practice, most non-resident individuals owe no further UK Income Tax on ordinary UK dividends.
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 indemnityDisregarded income rules limit a non-UK resident's UK Income Tax liability on specified income types, including UK company dividends, to the amount of any notional UK tax already treated as deducted. In practice, most non-resident individuals owe no further UK Income Tax on ordinary UK dividends.
What counts as disregarded income
Why it still needs care
The list includes UK dividends, interest and certain pension and social security income, but it does not extend to income from a UK trade, property, or director's fees, which remain taxable in the normal way for a non-resident.
Because dividends already carry a notional 0% withholding, disregarding them effectively means most non-residents have no residual UK tax to pay on dividend income, whatever their overall income level.
Disregarded income treatment can restrict your entitlement to reliefs and allowances elsewhere on the same return, so a non-resident with mixed UK income sources should model the return both with and without the election, since it is optional each tax year.
It also has no effect on how your home country taxes the same dividend, so it should never be treated as the end of the analysis rather than the UK side of it.
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
It is available by election on the Self Assessment return each year, not automatic in all cases.
No, director's fees and trading income are outside the disregarded income list.
No, it caps liability on the specified income rather than creating a repayment.
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