I'm about to go from being employed to being a contractor and am unsure as to whether to use an umbrella company or to set up my own ltd co. My concern with the ltd co is that the revenue may deem me to be an employee. If this were to happen, what would be the implications? What additional tax/penalties would I have to pay? Is this considered illegal i.e. deliberately avoiding tax and hence be more serious than just paying a penalty? Any info would be appreciated.
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