Can You Run a UK Business from Abroad? A Guide for Non-Resident Owners

Can You Run a UK Business from Abroad? A Guide for Non-Resident Owners

Yes. You can own and run a UK limited company, or continue a sole trader business, while living in another country. Companies House does not require directors to live in the UK.

There are four things to get right. Your company needs a UK registered office address. Every director must now verify their identity with Companies House. The company continues to pay UK Corporation Tax on its profits. And your personal tax depends on whether you count as UK resident for tax purposes.

This guide explains each rule for running a UK business from abroad, using the figures that apply for the 2026/27 tax year.

What address does your company need in the UK?

Your company must keep a registered office address in the country where it is registered. A company registered in England and Wales needs an address in England or Wales.

The address must also be what Companies House calls an appropriate address. This means:

1. Post delivered to the address will come to the attention of someone acting for the company.
2. The sender can get confirmation that their post was delivered.
3. It cannot be a PO Box or a similar mailbox service.

Many non-resident owners use the address of an accountant or a registered office service provider, which is allowed as long as the address meets these rules. Companies must also provide a registered email address, which Companies House uses for contact and does not publish.

If the registered office does not meet the rules, the company can be struck off the register. That makes this a simple but important box to tick before you move.

Source: Check the rules for registered office addresses and email addresses (GOV.UK)

Do you need to verify your identity with Companies House?

Yes. Identity verification became a legal requirement on 18 November 2025. It applies to every company director and every person with significant control, wherever in the world they live.

New directors must verify before their appointment takes effect. Directors appointed before 18 November 2025 have a 12 month transition period and must verify by their due date, which is linked to the company’s next confirmation statement.

There are two main routes for someone living abroad:

1. Verify online through GOV.UK One Login. A biometric passport from any country is accepted photo ID.
2. Ask an Authorised Corporate Service Provider (ACSP) to verify you. An ACSP is a UK regulated firm, such as an accountant or solicitor, registered with Companies House to carry out identity checks.

Once verified, you receive a Companies House personal code that connects your identity to your appointments and filings. If you run a UK company from overseas and have not verified yet, deal with this before your next confirmation statement is due.

Source: Verify your identity for Companies House (GOV.UK)

What tax does your company pay if you live abroad?

A UK company pays Corporation Tax on its profits regardless of where its directors live. Moving abroad does not change the company’s UK filing and payment obligations.

For the financial year beginning 1 April 2026, the small profits rate of 19% applies to profits up to £50,000. The main rate of 25% applies to profits above £250,000. Marginal relief provides a gradual increase between the two.

One point needs care. If the company is run entirely from another country, that country may also treat the company as tax resident there. Where board decisions are made genuinely matters, and this is an area where specialist advice is worth taking before you move rather than after.

Source: Rates and allowances for Corporation Tax (GOV.UK)

How do you know if you are still a UK tax resident?

Your personal tax position depends on your tax residency, which is decided by the Statutory Residence Test. The test looks at how many days you spend in the UK during the tax year and the ties you keep here, such as family, accommodation and work.

If you spend 183 days or more in the UK in a tax year, you are automatically UK resident for that year. Below that, the outcome depends on your circumstances and ties.

The distinction matters because UK residents pay UK tax on their worldwide income. Non-residents generally pay UK tax on their UK income only.

Source: Tax on foreign income: UK residence and tax (GOV.UK)

Do you pay UK tax on salary and dividends as a non-resident?

You usually still pay UK tax on UK income even when you are not UK resident. For a company director, salary and fees for duties performed in the UK are treated as UK income, even if you only visit for board meetings.

Dividends work differently. If you are non-resident for the whole tax year, UK dividends may fall within special rules for non-residents that can limit the UK tax due. Your country of residence will usually want to tax that income instead, and a double taxation agreement between the two countries decides who taxes what.

For anyone still within UK dividend tax, the 2026/27 rates are 10.75% at basic rate, 35.75% at higher rate and 39.35% at additional rate, after the £500 dividend allowance. The rates for dividends rose by two percentage points on 6 April 2026, so older guidance may show lower figures.

Cross-border income is one of the areas where the rules depend heavily on personal circumstances. Take advice in both countries before deciding how to pay yourself.

Source: Tax on your UK income if you live abroad (GOV.UK)

Source: Tax on dividends (GOV.UK)

What if you are a sole trader working from abroad?

A sole trader and their business are the same legal person, so everything rests on your residency status. If you are non-resident but still have UK trading income, you pay UK tax on that income and report it through Self Assessment.

One practical catch: non-residents cannot file through HMRC’s own online service. You must send a paper return with the SA109 residence pages, use commercial software that supports them, or ask an accountant to file for you. The paper deadline is earlier than the online one, so plan ahead.

Source: Tax on your UK income if you live abroad (GOV.UK)

Does IR35 apply if you are not UK resident?

IR35, also called the off-payroll working rules, affects contractors who work through their own limited company. It exists to make sure people who would be employees if engaged directly pay broadly the same tax as employees.

HMRC’s guidance confirms that a worker is not chargeable to tax on a deemed payment under these rules where factors such as the worker being resident outside the UK and the services being provided outside the UK apply. In plain terms, a genuine non-resident providing services from outside the UK is generally outside IR35.

If you remain UK resident, or you do the contract work while physically in the UK, the rules still need checking in the normal way.

Source: ESM9037, Employment Status Manual (HMRC)

An example of how the rules fit together

Priya moves from Manchester to Lisbon in May 2026 and keeps her UK limited company. She uses her accountant’s address as the registered office, verifies her identity through GOV.UK One Login with her biometric passport, and spends fewer than 40 days in the UK during the 2026/27 tax year.

Her company carries on paying UK Corporation Tax on its profits. Her own position depends on the Statutory Residence Test and the double taxation agreement between the UK and Portugal, so she takes advice in both countries before deciding how to take money out of the company.

This example is illustrative only. The right approach depends on your circumstances.

Frequently asked questions

Do you need a UK bank account to run a UK company from abroad?

No law requires one, but the company should have a bank account in its own name so company money stays separate from yours. Opening a UK business account without a UK personal address can be difficult, so many overseas directors use international or multi-currency providers.

Can you be the only director and live outside the UK?

Yes. A private limited company needs at least one director, and Companies House does not require any director to live in the UK. The company still needs its UK registered office and all directors must complete identity verification.

Do the company’s filing deadlines change when you move abroad?

No. Annual accounts, the confirmation statement, Corporation Tax returns and VAT returns all stay on their normal deadlines. Penalties apply in the usual way wherever you live.

Will you be taxed twice on the same income?

Possibly, but the UK has double taxation agreements with many countries. These agreements decide which country taxes each type of income and usually provide relief so the same income is not fully taxed twice. Claiming the relief correctly is one of the main reasons to take advice.

How WV4 Accountants can help

Running a UK business from abroad is entirely workable once the structure is set up properly. The difficulty is usually not any single rule but keeping every deadline and requirement moving while you live in a different time zone.

WV4 Accountants can help with:

1. Company formation and registered office arrangements.
2. Companies House identity verification.
3. Corporation Tax returns and annual accounts.
4. Self Assessment for non-resident directors and sole traders.
5. Payroll, VAT and bookkeeping.
6. Reviewing how residency affects the way you pay yourself.

If you are planning a move overseas, or you are already running a UK business from abroad, contact WV4 Accountants for clear and practical support with your UK obligations.

Important note: This article provides general information. Tax treatment depends on individual circumstances. Current HMRC guidance should be checked before action is taken.