"Contractors do indeed get the same basic allowance, however they do not get hit with corporation tax. Their company has to pay corporation tax on the profits. A contractor is not their company. their company provides sick pay, holiday pay etc. You are why IR35 exists."
While you are absolutely correct the contractors money and the companies money are not one and the same most people like to blur the line for the sake of contractor bashing...
But youre right it's all separate.
In fact, you have no idea if a contractor is taking 100% of the profits as a wage and paying full tax and NI, taking minimum wage and dividends or just leaving everything in the company to claim entrepreneurs relief when shutting the company down (if that still exists).
The majority will be taking minimum wage and a dividend AND leaving some in the company to cover sick days, holidays and time between contracts.
Seeing as you insist on posting as anon it's very hard to work out which of the other comments are yours, or who youre addressing..