[lol768]

>In the UK contractors are required to form a Ltd, thus all incoming is also outgoing (tax, VAT, salary, dividend, expenses)

I don't think they're required to do this.. certainly it's possible to work via a brolly. Public sector clients have started asking some contractors to do this post-IR35.

Whilst I know agencies have their own policies on this, do you know of any legal reason why companies wouldn't be able to work with contractors who are self-employed for tax purposes (/instead/ of operating via a Ltd company)?

Obviously in most circumstances it's a really dumb idea to operate as self-employed instead of via a Ltd company.

[HenryBemis]

I've been contracting in the UK for "a while". The last couple of years the gov was pushing the IR35 agenda to increase HMRC revenue, making contractors "super expensive employees without benefits". This year majority of the calls I got were within IR35 (no more Ltd) or Umbrella.

Up until 2019 vast majority of calls/contracts offered to me (in the IT Audit/Risk/Security, GRC areas) were Ltd. I guess large Financial Services companies enjoy the 2mil liability insurance. Because if little-me messes up, their will get jack-shit :) It was also making the "contracting for a project and not an employee" scenario.