If you take on an employee you will have to consider: Employer’s National Insurance, Employers Liability Insurance, Statutory Holidays, Auto Enrolment etc.
If you hire a self-employed worker it could be more beneficial because you will have significantly fewer legal responsibilities. However, this could potentially lead to other problems such as HMRC deciding the worker is an employee and that you have paid them ‘wages’.
They can then demand Employer’s National Insurance from you – plus interest/penalties. One of the key employment law factors to consider is: If you closely manage the worker to carry out their work, then HMRC are more likely to class them as an employee. However, if they work under their own control – more like a consultant or expert, they are more likely to be classed as self-employed.