Anyone heard of Aston Mae?

[mikesecurity]

Whilst I think the Aston Mae scheme is (removed by cuk), the link given by the previous poster deals with a scheme which is different from that operated by Aston Mae.

In the Aston Mae scheme, you pay at least the market rate of interest on the loan, so interest on the loan is not treated as a BIK. The trick is in the way that you avoid repaying the loan without it becoming a BIK. This trick seems to have two components to it, neither of which I am clever enough to understand.

1: the loan is not a personal loan but a corporate loan. It is paid from moneys held in an employee trust, from which the loan is made "at arm's length".

2: AM have a way of "annulling" the loan, about which they have provided me with no details at all, except to mention verbally that it is to do with Intellectual Property.

One should bear in mind that, in exchange for an additional management fee of 0.5%, they provide a warranty against any investigation or penalties from HMRC. However, if their clients (I have no idea if they have any) are penalised en masse, one wonders if AM would be able to make good on the warranty. Since they are located outside of the EU, one wonder what recourse we would have?

There is also, dare I say, a moral aspect in that I don't want to be a freeloader on a society whose benefits I am happy to enjoy when I need them. I should really pay my way, although I currently pay myself entirely in dividends to avoid paying NI, so I am perhaps a little hypocritical on that score

[malvolio]

<snip>.... I should really pay my way, although I currently pay myself entirely in dividends to avoid paying NI, so I am perhaps a little hypocritical on that score

You are. There's nothing wrong with paying tax on an entirely legal basis, which is what you (and a lot of other people) are doing. Don't fall into HMG's trap of conflating avoidance and evasion.

The only real issue (aside from morality, which has no place in taxation anyway ) is how far you want to stretch the legal definition of whatever avoidance measures you are taking.

Meanwhile, have a read of this - “The hardest thing in the world…

[LisaContractorUmbrella]

"AM have a way of "annulling" the loan, about which they have provided me with no details at all"

So, basically, you have entrusted your hard earned cash to a company that hasn't actually explained how its scheme works but has offered you a 'warranty' (for an additional 0.5% management charge - £300 on £60k p.a.) so you don't need to worry if HMR&C come knocking. What if the company mysteriously disappears, taking their 'warranty' with it, as soon as Hector appears over the horizon?

[Vallah]

As somebody involved in the industry, even I'd be extremely wary about firms claiming to be able to write off loans in such circumstances.

[mikesecurity]

You are. There's nothing wrong with paying tax on an entirely legal basis, which is what you (and a lot of other people) are doing. Don't fall into HMG's trap of conflating avoidance and evasion.

The only real issue (aside from morality, which has no place in taxation anyway ) is how far you want to stretch the legal definition of whatever avoidance measures you are taking.

Meanwhile, have a read of this - “The hardest thing in the world…

Perhaps I am not being hypocritical. Paying myself in dividends means that I at least declare all my income. I am just drawing that income in a tax-efficient way which HMRC seems perfectly happy with. They can always change the rules if they donlt like it. They get much of it back in corporation tax, anyway. But pretending that the bulk of my income is actually a loan (when it isn't) is just plain wrong, if not yet proven to be illegal.

[compldc72]

the jury is still out

I've spoken to Aston Mae as well, they realized I wasn't sure about joining so got me to ring someone who was already using their scheme, of course, I didn't know if this guy was really using their scheme or sitting in another room...he was happy with it, had been using it for 6 months but then it's ok until HMRC come knocking. I told the aston mae guy I may consider it when I change contracts, the extra 10% they can get you does work out around £600 a month on £300 a day - that's £7000 a year!!! I'm still thinking about it but edging towards staying with my LTD co,

[MarkR]

Aston Mae forward your details on to another company called EVEI Services (removed by CUK)

[Confused1]

I too have just been contacted by this outfit recently, offering 83% return...it's too good to be true

Has anybody actually joined this scheme?


I was offered a similar scheme about 5 years ago, I looked into it and thought it was better to stay with a Limited company. The demons have returned...what should I do?

[administrator]

I too have just been contacted by this outfit recently, offering 83% return...it's too good to be true

Has anybody actually joined this scheme?


I was offered a similar scheme about 5 years ago, I looked into it and thought it was better to stay with a Limited company. The demons have returned...what should I do?

Have you actually read this thread before replying to it? If so what makes you unsure as to whether to use this scheme or stick with Ltd?

[dicklush]

i've been contacted by them too - i seem to remember someone telling me any umbrella company who insures you against future tax bills is screwed under the managed service company rules and that could leave you all to foot the bills... can anyone shed any light on this?