Whistle Blower,
The government IR35 regulation is to ensure that those who are running Limited Companies (in particular those offering services) and hence gaining tax benefits via dividend payments and claiming expenses against tax are truly independent contractors and not disguised employees. Look at the Dragonflycase one of the most recent sucessful investigations by HMRC concerning IR35 compliance, that cost the individual involved 99000 in "unpaid back tax", so that did become a matter of personal tax.