There is a lot of misconceptions about this. > One of criteria is right to subcontract It's not entirely true. Just because such right exists in the contract,

There is a lot of misconceptions about this. > One of criteria is right to subcontract It's not entirely true. Just because such right exists in the contract, does not mean it is valid. HMRC guidances have a ton of rules where it does not count. For instance if the business could use the sub-contractor directly. > and freedom to work with multiple clients. This is also irrelevant, because exclusive supply agreements is a normal business practice. Also people can hold multiple employments and that does not make them "contractors". People can also be contractors and employees at the same time and anything in between. > If they get it wrong, they're liable for taxes, not the Contractor. That's not entirely correct either. The client can claw the money back from the Contractor and very much every contract I have seen has clauses ensuring that any unpaid tax the client is liable for will be re-paid by the contractor.