But you are still acting like an employee. That's fact. So you should be taxed as an employee. The fact you charge a lot more than an employee costs gives you more income and you also have the ability to offset various things against tax, so you're better off. More money = reward for increased risk.
I used to employ contractors - these people had specific skills we did not have in house, they worked at various sites, often starting early and finishing late, worked hard and brought a lot of knowledge, experience and skill to the pot and we were grateful to them. They cost a lot of money - £750+ a day and this was some considerable years ago.
What's changed is the current contractors on the whole seem to think they can swan around like an employee, carrying little risk with long contracts and almost guaranteed renewals. They sit side by side with employees, doing the same job, same hours - just an outsourced employee. Employees can be terminated just as easily as contractors so there's very little difference. To a large business the redundancy payments are of little relevance.
So you can see why IR35 came in and why HMRC are going after the pretend employees. Especially with the various fraudulent methods of tax avoidance going on and the incredible number of people talking advantage of it. Just read the news to see !
Genuine contractors have nothing to fear - all depends what you have to offer - some have more to offer than they can ever charge for but the majority these days are not bringing much to the table - they are employees in all but name and should be treated as such.
TheReg readers seems to be very pro-dodgy-contractor so vote me down - go on ! :) The rest of us honest tax payers who want to contribute to the NHS, the welfare system and schools etc will carry on paying tax and supporting HMRC going after the tax dodgers.