A contractor is going to start an employed full time role and has a (and is the sole director of) a Ltd company with a six figure bank balance built up from 3 years of contract income. The income from the employment will be in the higher tax bracket.
The contractor wants to keep the company for the time being and possibly for up to 18 months to in case the employment does not work out. However the company would not be dormant as interest is accruing and being received on the bank balance. The interest would amount to c. £1k per annum and easily cover any administrative costs of filing, etc.
The ideal scenario is the employment works out and then after about 18 months the company is liquidated in the most tax efficient manner e.g. through MVL obtaining entrepreneurs relief and being liable only for 10% capital gains tax.
1) Are there any restrictions to watch out for in keeping the company ticking over that might risk the contracting from being to take advantage from entrepreneurs relief? Note: the company would only have bank interest as income and admin expenses as expenditure.
2) Since there is no tax-efficiency in any further PAYE income or dividends being paid from the company as of now would the contactor be better off de-registering from PAYE or simply not being paid for a period with NIL RTI returns?