Human capital is the most important, and frequently the most expensive asset of any business. Accessing the right people with the right availability and the right skills on a pay-as-you-use basis means that businesses can channel scarce cash reserves to where they are needed most.
From an HMRC perspective, it is important to understand the various types and definitions of employment. Employment vs. self-employment is essentially a question of control. The more control a person has over their approach to doing their work (where, when and how they perform the work), the more likely they are to be self-employed. Delivering similar paid services to multiple employers further serves to define a person as self-employed.
While JIT flexible resourcing can work really well for small businesses, employing self-employed people does not mean the employer absolves itself of all responsibilities. It is important for all business owners to abide by HMRC guidance and comply with UK employment law (www.gov.uk, www.hmrc.gov.uk).
Self-employed workers are responsible for maintaining their own records and paying their income tax and national insurance contributions, however employers can make it easier for them to do so. Requesting invoices for all work done and making payments by cheque or bank transfer are two easy way to support accurate record-keeping.
Some really useful resources:

• Employed vs. Self-Employed? (www.hmrc.gov.uk/employment-status/)
• Employers’ Legal Obligations (see ‘Self-Employment’ under ‘S’. www.peninsula-uk.com/a-z-advice-guide/)
• Everything the Government needs you to know. (www.gov.uk/employment-status/overview)
• Tax and National Insurance for the Self-Employed. (www.hmrc.gov.uk/sa/self-emp.htm)
• ‘Thinking of working for yourself?’ (www.hmrc.gov.uk/leaflets/se1.pdf).