Some "contractors" are really just employees dressed up to appear self-employed, while some are genuine businesses. IR35 hasn't worked very well so far to tax them as employees. Will the next version?
Hundreds of thousands of contractors who hire themselves out through personal companies will see their average take-home pay reduced by about 13 per cent if the government pushes through plans for a tax clampdown. HM Revenue & Customs has said that 90 per cent of contractors selling services to clients through so-called “personal service” companies are avoiding income tax and national insurance, which existing rules say they should pay.