Greedy communist HMRC
It is an individual's right to work under a limited company.
What silly HMRC have clearly not taken in to consideration is that contractors earn substantially more and end up paying a lot more tax than similar paye roles because they earn more. What HMRC did was ignore the increase in earnings and resulting tax revenue and came to the conclusion that these contractors pay less tax than they would if they were paye. They are comparing apples to oranges but they can't see it because they are blinded by their greed.
It is very communist to force people out of working for their own companies to working as an employee. What started out as crack down on overpaid contractors in the public sector is now bleeding through in to the private sector.
How many large companies started out as one man company and grew from there, probably most of them. The impact forcing people to be employee's will have on entrepreneurship is not even considered by HMRC because they blinded by their greedy money grabbing ideals.