"while you get none of the benefits of being an employee"
@Dr Mouse: "while you get none of the benefits of being an employee"
If you mean that you don't get pension, holiday pay, sick pay, redundancy pay and protection, etc., then that's only true if your rate doesn't cover the effective cost of those things. That's why contractors' rates are high - to cover sick, hols, pension, professional and liability insurance, marketing, office, phone, IT, banking, transport costs, etc. If your rate doesn't compensate you for all these things, including the extra tax that might be deducted, then you're not charging enough. If your rate does cover all these things but you can't get work because clients think your rate is too high then you're not valuable enough and possibly shouldn't be contracting.