You may remember the newsphoto's of GB settling in as Chancellor, back in 1998, with a pair of large (for then) 19" LCD monitors.
The IT equipment was installed by contractors, who as IT people do, started "talking up" contracting to the in-party permies. And mentioned the tax avoidance that LTD Co contracting bought. Another chapter in the genesis of IR35; NuLabour's inherent, instinctive, policy of hate and spitefulness.
@Pro-IR35 advocates. Ltd Co contracting enabled individuals to minimise their tax position, and maximise their take-home pay. The process is called tax AVOIDANCE, and is perfectly legal. You might find it morally wrong, but its simply good accounting. Tax avoidance is not just legal from the perspective of accounting rules, but also enshrined in legal precedence, when a Judge announced that no man can be compelled to pay a penny more to the state in tax than the absolute minimum. I recommend looking at
Lord Tomlin in IRC v Duke of Westminster, 1936
Lord Clyde, Ayrshire Pullman Motor Services & Ritchie v CIR ((1929) 14 TC 754)
Commissioner v. Newman, 159 F.2d 848 (2d Cir. 1947)
Lord Summer, The Commissioners of Inland Revenue v Fisher’s Executors. (1924-26) 10 TC 302
Four broadly similar statements, all embedding in law the legal principle that tax avoidance is perfectly legal.
Of course, Labour doesnt agree - if you listen carefully to some of the rhetoric over the last two years when ministers have spoken on the subject (eg bank bonuses, increased taxation), they use the word 'avoidance' deliberately, ie "tax avoidance is wrong" rather than "tax evasion is wrong".
And tax evasion is. Evasion - ie not declaring income is evasion (cash in hand work, for example).