Apart from agreeing the IR35 applies to people who sell their services through a PSC I have a very different take on to that… IR35 is about making up the loss

Apart from agreeing the IR35 applies to people who sell their services through a PSC I have a very different take on to that… IR35 is about making up the loss in revenue of employers National Insurance, as PSC shareholders can avoid NI by paying themselves mainly in dividends rather than a salary. The dividend tax makes up for the lack of employees NI on dividends but there’s no employers equivalent. Large companies use umbrella’s because they don’t want to take on the burden of employing contractors but depending on how the relationship is setup is the umbrella becomes the contractor’s employers (assuming engaged direct rather than through their PSC) and that means the contractor has a whole set of employment rights — sick, holiday, pension that the umbrella is now responsible for