Do you think this is legitimate?

[bit stuck]

I’ve been working with an umbrella company for over a year taking home 44% of my day rate, but obviously benefiting from the expenses policy and being encouraged to claim for the maximise expenses allowances.

I’ve seen this company advertised called AML ([mod ] URL snipped [/mod]) whom claim to be able to give you 80% return on your hourly rate they state

“Welcome to AML For contractors seeking the benefits of employment combined with the freedom, flexibility and financial rewards of contracting.
Enabling you to take-home over 80% of your income, AML provides a real employment alternative for contractors who don't want the administrative burden of self employment or working through a PAYE umbrella company structure. AML's employment service is IR35 and s660 compliant and is endorsed by leading Tax Counsel and Employment Counsel"

How legitimate is this?

If they are an umbrella company why arn't my existing offering a simular deal?

I don’t want the hassle of my own LTD Company but want a better return than 44% + expenses.

What would you advise I do?

Thanks for your advise

[Fat Dave]

44% - are you serious?

[Vallah]

They're not an Umbrella Company, you become an employee and receive loans from an EBT.

[malvolio]

Walk away. They're telling porkies. Seriously.

[nodric]

44% - are you serious?

If you are loosing 56% of your income, I'd suggest finding another Umbrella quickly, or spending some of the extra retained income on a good accountant, and setting yourself up as LTD!

What sort of fees are they charging you?

[JimBobTwoTeeth]

If you are considering an EBT the key thing is that they should have agreed their scheme with HMRC. And even then there are examples of them still going after people.

[MarkOD]

putting it bluntly..............run run run run run run! which is what you'll be doing eventually when the tax man gets in contact asking why you're money has been going offshorre when you're clearly a UK resident who should be paying UK tax!

Are you sure your return is accurate BTW? seems ridiculously low!

[Tarquin Farquhar]

If you are loosing 56% of your income, ...

Normally I would point out that
"losing" is what happens to something that you had but don't have any more,and
"loosing" is what you do to something when you let go of it, so that it can run or fly away.

But in this case you may be right.

[Wanderer]

If you are loosing 56% of your income, I'd suggest finding another Umbrella quickly, or spending some of the extra retained income on a good accountant, and setting yourself up as LTD!

It depends on your income, but if it's around 500/day then that's how much tax you pay through an umbrella.

I would suggest the OP does some research into IR35 to figure out if you are in or out. If you are out, then setup a limited company and 6,000 a year in salary and the rest in dividends.

Don't get involved in these dodgy EBTs or offshore schemes. See the BN66 sticky for an example of what can happen with them....

[Fred Bloggs]

Seriously, you need to set up a Ltd Co. The chances are, IMO that you will be outside IR35 given a half decent contract and half decent working practices. Take advice from the likes of QDOS and others who specialise in this field. EBT's are to be avoided at all cost, IMO.