I am in the middle of taking over a company and holding company from another accountant. In the meantime I have been looking at Companies House filings and this years book-keeping. It seems previous Accountant set up a holding company owning 80% of share in trading company. This owned 100% by person A. Now...the trading company is run mainly by one director but he has only 15% of shares. Previous accountant did not explain about when you can take dividends and how much. As he runs the company he thought he was entitled to what he liked ( within reason) and has been paying himself a small salary with weekly additions in what he thought were dividends. (With nothing transferred to the holding company for their 80%) He was also under the assumption (from previous accountants) that he was entitled to 85% of the dividends. Where this figure came from I don't know. My problem is that I think this additional money should be called salary subject to PAYE as he is only entitled to 15% of what he has taken. But...this has been going on since August 2018 hence the 2018/9 and 2019/20 PAYE submissions would be incorrect if I did that. Any thoughts on what I should do?