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@701arvn "HMRC's challenge is to make Contractors pay the tax they should,"

Erm, I and all the contractors I knew did/do pay the tax they "should". Actually, most contractors pay more in tax to the gumment than permies, across corporation tax, dividend taxes and tax on salaries (even low ones). The "big" differences are (i) NICS - and why the helll shoudl I pay big NICS when I don't get the same benefits when I'm out of work (or in my case, long-term sick) and (ii) deferring salary/dividends - but why can I not do exactly what the bigger companies do which is to even out the peaks and troughs of company income. It's not as if I am benefitting in tax because I don't take an income - since I am also not benefitting from the income itself. This whole thing is driven by (i) HMRC scratching around to maximise intake and (ii) jealousy of permies against the high rates contractors get. I always said, if you want Contractor rates, quit and become a contractor, see if you can hack it. Grrrr.