Make sure that dividends paid to family members who own shares are clearly distinguished from their pay. Dividends are not usually dealt with through PAYE (Pay As You Earn) system are not subject to National Insurance contributions (NICs).
You may ask for a dispensation from HM Revenue & Customs (HMRC) not to report expenses or benefits that are not taxable.
The dispensation also means that the expenses or benefits do not count as earnings for NIC purposes.See further guidance on exemptions and dispensations.
Regardless of whether or not they are family members, you must operate a PAYE system for all your paid workers - see PAYE and payroll for employers.
You must also keep records on pay and deductions and, for national minimum wage purposes, details of working hours and other appropriate information - see National Minimum Wage and National Living Wage - record keeping.