Tax liability question...

[Forbes Young]

Thank you all for the feedback. For the record my perm salary (40k) will be right on the cusp of the higher tax rate. So, technically, I could pay it out after April 5th and not incur the higher rate of div tax?

Suggest you take your accountants advice: from what you say thats the best way to minimise your tax bill if you have a £40k pa salary going forward. To keep the company open in a dormant state will incur further accountancy fees and you will still continue to need to complete a self-assessment tax return each year (more fees) if you are a director at any time in a tax year. If your only income is £40k pa from employment you wont need to complete a tax return. If you do later on want to go back into contracting, simply form a new company.

[Curious Beaver]

Thanks again to all who responded with advice ITT. I'm striking off the company.