Paying yourself from abroad
Usually yes. Directors' fees are earnings from a UK office and generally fall inside PAYE regardless of where the director lives or works, subject to treaty.
Short answer
Generally yes. Directors' fees are treated as earnings from the UK office of director and fall within PAYE even if the director is non-resident and never performs duties in the UK. A double tax treaty may later reduce the final UK tax liability, but PAYE is usually operated at source.
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 indemnityGenerally yes. Directors' fees are treated as earnings from the UK office of director and fall within PAYE even if the director is non-resident and never performs duties in the UK. A double tax treaty may later reduce the final UK tax liability, but PAYE is usually operated at source.
Why the office of director is special
Relief through the tax return
Employment income rules for non-residents normally look at where duties are physically performed, but a director's fee is attached to the office itself, which is treated as UK-based because the company is UK incorporated, regardless of where board decisions actually happen.
That means PAYE usually applies to the full fee, not an apportioned amount for days worked outside the UK, unlike ordinary non-resident employment income.
Where a double tax treaty gives the home country primary taxing rights over director's fees, the non-resident director reclaims any excess UK tax through Self Assessment rather than by having the company reduce PAYE at source.
Some treaties instead give the UK primary rights over director's fees specifically, which is why the answer depends on the actual treaty wording, not a general assumption about residence-based taxation.
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
Local help
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, presence in the UK is not the test for director's fees, unlike ordinary employment duties.
Not without HMRC authority; PAYE should normally be operated unless a specific direction says otherwise.
Not if the underlying relationship is still that of a director; HMRC looks at substance, not the label.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
Yes. You can ask a straightforward initial question without charge. Calculations, filings, written advice, planning and HMRC correspondence are scoped and quoted before work begins.
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Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
Appointments run monday to friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
