Can I Pay My Spouse a Salary from My Company?

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Last updated 23 October 2026. Written by the Limited Company Accountant UK team, part of Accotax. Figures are for the 2026/27 tax year; always check GOV.UK for the latest rates.

Short answer: Yes, if they do genuine work for the business and the pay is reasonable for the work done. The salary is then deductible for Corporation Tax and can use their personal allowance.

At a glance

Rule Genuine work at a fair rate
Records Contract, timesheets, payroll
Risk HMRC challenges token payments

Why it can help

A spouse with unused personal allowance can take salary tax-free up to £12,570, with NI thresholds to consider.

What to avoid

Paying a salary for no real work, or paying far above market rate, can be disallowed.

Want this handled for you?

Fixed monthly fee, named accountant, free first consultation. Get a free quote or call 0203 4411 258.

The bottom line

Yes, if they do genuine work for the business and the pay is reasonable for the work done. If you would rather not do it alone, our fixed fees start at £45.83 + VAT a month.

Frequently asked questions

Can my spouse get dividends?

A

Only if they own shares, and settlements rules can apply.

Do I need payroll for my spouse?

A

Yes, as for any employee.

Ready for a fixed monthly price?

Our packages start at £45.83 + VAT and cover accounts, tax and deadlines. Get a free quote or call 0203 4411 258.

JW
About the authorJames Whitfield, Senior Accountant

James Whitfield is a senior accountant at Limited Company Accountant UK, part of the Accotax group. He works with company directors on year-end accounts, Corporation Tax, VAT and director pay, and reviews every guide on this site against GOV.UK guidance.

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