You ever dealt with HMRC?

Yes.

As the director of a LTD company, within the last 3 years?

Every day.

So, given your comments, you don't take dividends, declare all earnings in full (paying appropriate NI) and no expenses offsets?

All those things are legitimate (provided for example, that dividends are properly declared) other than if the company is a PSC which is effectively a sham intermediary within what would otherwise be considered an employment relationship.
You have a problem in your dealings with HMRC - what is the nature of the problem?

I have no HMRC issues at the moment, but on the next contract, as D_R said, agencies are pushing people towards Umbrella Companies. But, hey, it's happened now so just make the best of it.

The legislation has been in place along time. The use of umbrella companies to me suggests sham.

Umbrella Companies are just an extra expense, a big changes have only recently come in (away frome home expenses etc.)

In the old days as director you used to be able to pay yourself a dividend instead of PAYE which provided quite a saving for both you and company - HMRC seem to have clamped down on this these days