172 & Avenger: You make some very specific comments that seem to suggest the use of LTD companies to hire contractors is not kosher. If the contractor is self-employed, but tied by contract to one customer, then they should be employees. That sounds fine & dandy. So why is this construction still in force? The payment of social costs to the country of base, but the payment of income taxes to the country of the LTD company does not seem to negate or redefine the legality of the situation. So which is it? If it is not legal why is it still enforced by some companies? How do they get away with it. The contractor has no choose; some possible work or not. As you say they have been hit with back tax bills. Why not then the outfit they are contracted to? 100% of the blame does not lie on one side of the contract. It's a 2 sided affair, surely?