UK HMRC wants to eliminate non-PAYE employment and has been trying to do so since around 2003. This has proved difficult for them since contractors/consultants

UK HMRC wants to eliminate non-PAYE employment and has been trying to do so since around 2003. This has proved difficult for them since contractors/consultants are often not just working as contractors to try and reduce tax, some of them are, y’know, trying to build a business and gain freedom from the 9-5. The most successful strategy for HMRC has been to fine employers for employing people as indy consultants who would otherwise be classed as on the payroll/PAYE types. These umbrella companies/3rd companies insulate the employer from some of the “risks” invented by HMRC to them.