"that's the company the individual own's and likely takes minimum wages from + dividends."
That's what I thought you meant, and this is why you're wrong :
We are talking about IR35. When a contractor is inside IR35 the company that they own is removed from the equation meaning that it has no income with which to give them the sick pay or holiday pay that you are suggesting they can pay themselves.
Inside IR35 the contractor is no longer an employee of *their own* company [1], they are an employee of the company that pays them (ie the client - the company that the end product belongs to) except they do not get holiday pay, sick pay, pension contributions, maternity/paternity pay. Yet they pay exactly the same % Tax and NI as people who do (Actually with their slightly higher day rates they pay *more* £ than the employees who get these benefits.
[1] Well they are unless they decide to close the company down but as the company has zero income they are unlikely to pay themselves a wage.
Biting the hand that feeds IT
