Ltd Co, umbrella, PAYE, Sole trader.... Whats the correct course?

[Rob79]

Yep well I know enough about EBTs to know that HMRC get around 4-5% of the total earned, with 15-16% going to the people behind the scenes. I think it only reasonable that HMRC might think that a little unfair. Just goes to show, last time this was touted to me it wasn't dressed up but just called an EBT, with all the usual bullet proof, been running for years without problems BS, this time it was called a ltd company with trustfund, muddied the waters for me but an hours worth of googling and some interesting advice about vaseline later, I can see it for what it is.

Just think about what the "T" in EBT stands for.

Simples.

[TheDandy]

Hey well thats why Im asking, the umbrella Ive used for years used to push EBTs, I never got involved, sounded bad from the off. But Ive just received an illustration of the Ltd co with trust and 80% retention including accountants fees, invoicing etc. Yes sounds suss! Googled and cant find much on this. I'm told they have been running this for 25 years and never had anyone found to be in breach of HMRC rules. Yes the guy is a salesman, yes I am a cash cow have been for more than 2 decades but never used ltd co plus trust. Is retaining an additional 10% over the 70ish% a normal ltd company would offer worth it? No idea the level of risk. If someone else does, i would be pleased to hear it.

Care to name the Umbrella?

[Worcsman]

Care to name the Umbrella?

Nope

[jmo21]

Nope

So happy to ask and take advice, but not warn others.

[cojak]

I don't have a problem with that. These cowboys are springing up with new names all the time.

[Worcsman]

So happy to ask and take advice, but not warn others.

There is no warning to give. They are just another brolly company, they aren't doing anything illegal. I asked advice here specifically about Ltd Co with trust, I had never heard of it termed that way, Ive never used a trust style scheme and never want to. To answer your question, yes I'm happy to take advice, if I felt that I should warn people off from using a company I would probably do so.

Id warn people from using trusts to draw down salary, but that would be pointless and only my personal opinion. Id wager there are plenty browsing these forums that use EBTs and similar, nervously flipping over the brown envelope that arrived in the post to see if it has HMRC stamped on it.