CIS Intermediaries

Contracting client uses self employed sub-contractors.  They have been approached by a company who will act as an intermediary and the intermediary will operate a contract for services with the subbie and supply the services of the subbie to the contractor.

Can anyone advise as to what the tax risks are here (and any benefits)?

Potential Benefit?

Would the setup remove the potential employment risk for the contractor? 

Potential Risks?

If the sub contractors were deemed employees and couldnt pay the PAYE/NI would the MSC transfer of debt regulations apply and be transferred to the contractor?

Also, could the Agency Workers Regulations apply if the subbies are used for more than 12 weeks?

Thank you for any help.