Paying yourself from abroad
Yes, if the pay reflects genuine work done and is reasonable for the role. HMRC challenges family salaries and dividends that look disproportionate to the.
Short answer
Yes, but the pay must reflect real work at a market rate if it is salary, and dividends require the family member to genuinely hold the relevant class of shares. HMRC can challenge arrangements, including under settlements legislation, where pay looks disproportionate to the work or shareholding involved.
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 indemnityYes, but the pay must reflect real work at a market rate if it is salary, and dividends require the family member to genuinely hold the relevant class of shares. HMRC can challenge arrangements, including under settlements legislation, where pay looks disproportionate to the work or shareholding involved.
Salary to a family member abroad
Dividends to a family shareholder
The same PAYE, and potentially National Insurance, questions that apply to a non-resident director apply equally to a non-resident spouse or relative on the payroll, including the need for a certificate of coverage or A1 where relevant.
Keep evidence of the work actually done, such as timesheets or a role description, since HMRC is more likely to query family pay than pay to an unrelated employee performing the same job.
Where a spouse or relative genuinely owns shares, dividends on those shares are paid and taxed the same way as any other non-resident shareholder, with no UK withholding and usually disregarded income treatment.
Arrangements that give shares with full dividend rights but no real economic risk or rights, purely to route income to a lower-taxed family member, are the kind of settlement HMRC is most likely to unpick.
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
Yes, holding shares does not require also being a director.
Yes, it looks at the UK company arrangement, not the residence of the person receiving income.
No, genuine work at a market rate is generally fine; the risk is disproportionate pay for little or no work.
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.
Included approach
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Share your next deadline, accounting problem or growth question. We will reply with a clear next step and quote any technical work before it begins.
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Appointments run Monday to Friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
Four London offices
Work with us entirely online, or sit down with your accountant at whichever office suits you. Open Monday to Friday, 9:00am to 5:30pm. Office visits are by appointment only, so please book before coming in.
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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.
