Renumeration clause in contract unclear

[TheFaQQer]

hmmm..... my potential "to be" accountant just replied with a 1 liner - "Dividend income doesn't form part of your remuneration."

1) Can I take this as gospel?
2) If not, whom would be the definite authority to consult and go back to the agency with a solid reason to get the clause removed/changed?

Agency are adamant to see something from an accountant/legal stance from my end before the amend. I have moaned about this twice already.

I'll be happy to decline the contract on this clause but wondering whom I can get to back me officially.....

thanks all.

I agree with the accountant - dividend income is a reward for the risk you take as a shareholder, not remuneration of an employee. Imagine if you own no shares and your wife owns 100% of the company - if you paid a dividend, the Representative or Substitute wouldn't be entitled to any additional payment.

That all said, I wouldn't want the clause in my contract. If the agency won't negotiate, then I would get looking for something else and walk away from this one unless you need it.

You could ask the accountant if there is a definitive reference that you could quote, but I doubt such a thing exists.

[BlasterBates]

I think TheFAQQer has made some good points i.e. if this is not a public sector organisation looking to clamp down on IR35 and it is just a formality about making sure you're paying tax, then there is nothing to worry about.