[haspok]

I'd left the city 5 years ago, just before IR35 hit, so my info is not quite up to date, but in general I would say that nobody can work without taking any vacations - both for health and legal reasons. Some contracts may even stipulate a maximum number of days you can work in a year (that's where my 220 number is from).

And it used to be that you could do some tricks to lower your taxes, but there is a limit, and after the IR35 reforms many firms decided they don't want contractors, or they are pushing you inside IR35, which means PAYE taxes, and worse (because you still have to do the accounting for your company, pay corporation tax etc). So contractors are earning LESS than an employee with an equivalent salary, plus there are some extra burdens. It used to be that a regular engineer (without any management responsibilities) could achieve higher income in the short term being a contractor, but I'm not sure that is the case anymore.

Outside London, if you can find a place willing to take you on as a contractor it may still be worth it, because your daily rate will be less, meaning you may not reach higher tax brackets, and compared to almost everyone else around you you would still be king.