Re: I love the spectacularly timing of it all
"Not sure you're getting the concept of risk."
I read that post as explaining - correctly - how the freelancing company manages the risk. The well managed freelancing company deals with the risk not by sharing it nor by insuring it (as you point out, that's not possible for the typical single consultant company) but by putting money aside to continue paying its employee when there are no billable hours, either by being sick, on holiday or being on the bench.
Right from the start or IR 35 this has been misunderstood. Primarolo described it as "treating their companies as money boxes". Well, a moneybox is where money's saved against a rainy day. It's the means by which the company stays solvent. It is good management.
In fact, I'd suggest it's a good test of whether the company is being run as a genuine company; if it's being managed prudently in this way it's the genuine article, if it's a direct conduit through which the money travels from client to worker scarcely touching the sides then IR35 might be appropriate.
There's also a corollary. If we add an expectation that the worker will be paid NMW or living wage and build up reserves then the rate must be some margin above that. If the client pays less than that then they have an employee. Not a deemed employee catching the rough from both sides. A genuine on the books employee, benefits such as holiday pay, sick pay, redundancy the lot paid by the client, PAYE handled by the client, employer's NI paid by the client.
From the engager's point of view they then can't get away with shoving off the provision of benefits and pay rock-bottom rates: either they have a company providing services at a reasonable rate or thay have an employee. In fact it was dealing with the sort of abuses that we see so much of now that was a paper-thin excuse for IR35.