Re: Dangers of moving from outside to inside IR35
If those contractors weren't adding value in the first place, then why did you have them?
Because it was easier to offload all the extra costs of holiday allowance and health care, etc. to the contractor so that the company just paid for X hours work, as a service.
That's what pisses of HMRC, the use of contractors to bypass tax/NI obligations. Of course, competent contractors would be arranging all such things through their own company and charging appropriately, but many don't, either because they think it makes them seem too expensive (Duh) or because they're having too much fun raking in the cash & never think about the unexpected or the future (I know many like that, sadly).