Re: I am HMRC's target
"Two taxation systems.
That is the essential problem.
People are taxed one way, and companies a completely different way"
Not really a problem, just a reflection of different modes of operation.
If you operate a freelancing company you should run it as a company. It's not, or shouldn't be, a conduit for cash straight to the worker's pocket, nor should it be a vehicle for strange financial shenanigans involving loans with peculiar T&Cs or the like. I don't have too much sympathy with those who run into problems with doing the latter. A little sympathy if they were suckered into it by some smart salesman pushing a financial package to make a commission but they should remember if it looks too good to be true it probably is.
If you're an employee of a company that you don't own you'll expect your employee to take incoming cash, pay your salary, employer's NI, put aside cash to pay your holiday, sick pay, [mp]aternal leave and any employer's pension contributions. Also to continue paying your salary if things get a bit slack. A freelancer's company should so just that. In particular the client pays for instant availability - the regular greeting of an agent is "Are you available?". "Available" almost invariably means out of contract and possibly having been so for some considerable time. Providing that availability is an overhead for the the business.
Envious of freelancers? If you think you can hack it, including providing the availability, join in. If you can't, keep quiet, the freelancers are doing things differently to the way you choose to do them.