a client of ours works for the BBC and has now had the contract reviewed and it falls under IR35 for public sector.
the contract start date is 05.04.17. Since April the director has reported a directors salary with the remainder as dividends. The BBC has classed income since 05.04 as falling under this contract and is now going to recoup taxes paid on the payments to the company.
so my question is what would everyone suggest is needed for the payments to the director from April until now? Ie would it be appropriate to declare a large wage now for the difference ie the dividend amount so far and then is it actually possible to cancel the Dividends since April?
Is anyone else dealing with this at the moment? If so why support/advice would be appreciated.