The idea
As a contractor, I fall within the IR35 regulations, which means I get classed as an full time employee in order to pay full PAYE tax, but get no benefits such as holiday/sickness pay and can have my wages reduced with no consultation (as recently happened) with a take it or leave it attitude on by the employer (the government by the way).
If i'm classed by tax man as a permanent employee, then I should also benefit form the protection they have,
Refer to following link fo rmore information around this purely money grabbing bit of legislation:
http://www.contractorcalculator.co.uk/contractors_inside_ir35_employment_rights.aspx
Why is it important?
This legislation has caused confusion, potentially led to a rise in tax evasion as people find ways around it and left the contract market in a poorer state than before it came into force.