Employed or self-employed?
In relation to tax and employment law, you need to consider whether a worker is an employee of your business, or instead a self-employed contractor (i.e. a freelance consultant or sole trader). An employee is a worker who has entered into, or works under, a contract of employment. A self-employed person is a worker who is an independent contractor who usually works under a contract for services.
Despite arrangements made which are intended to create self-employment, the legal position still might not amount in law to self-employment.
If the worker is using a personal service company (“PSC”), i.e. he is not directly engaged by his client, then the IR35 rules might apply to the proposed engagement of that PSC.
It is therefore always advisable to take relevant legal advice on your particular circumstances.