Work and waiver

I have a limited company client where the two working directors are both 50% shareholders.

The company provides public relations advice to various corporate clients and the position looked very clear until one university client refused to deal with the company and insisted that the director working on the project accept the work as an employee of the university (IR35 worries etc.).

This is an ongoing contract that could last three years and is worth about £30 000 per annum.

The end result is that there is now an imbalance between the profits being earned by each director in the company – so we need to create the position where the director working for the university takes £30 000 less out of the company in terms of salary and dividends than the other director.

My thinking is that dividend waiver is the best route but I understand there...