Dividend Income – How much?

[ASB]

Can you actually just keep the money in the business if you don't need it?

Yes. But there will be a point at which there is a risk of becoming a Close investment company. This means you pay CT at full rate not smaller companies rate. Opinion is divided on when this might happen. However if you are not actively trading then assets held by the company are not really for the purposes of trade and this could trigger this - of course you need chargeable profits for this to be an issue.

If you are trading it can still be a problem, but in practice I don't think anybody has really seen much in the way of challenge. If any assets held by the company exceeded the gross profits from trading I think it might be a risk.

Can you just build up the reserves and liquidate in one go?

Yes, but if you are totally loaded don't forget the lifetime limit on entrepreneurs releif. This might affect any tax paid on exit. However in this case leave the country, go to somewhere that doesn't tax capital gains and come back in 5 years so you don't have to repay the CGT you didn't pay.

Is there any possibility of somehow being challenged about taking no salary at all?

Yes, if you are an employee. NMW is now enforced by HMRC so they could attack this. But of course just ensure you don't have a service contract then currently NMW doesn't apply so HMRC can go forth.

Can you invest the money in the Company in shares?

You can invest it what you want. The tax treatment is in accordance with the laws so a few ks of marching powder would be a bit rash.

Shares, Gilts, Property the usual gamut. If it's legal as an individual it is usually available to the company. However the companys CGT regime is different. Basically there is no CGT allowance.