Employed or self employed

I had a very worrying conversation recently about childcare settings that are contracting with their staff on a self employed basis and assume this is just a matter of choice. I have also come across this recently where childminders are expanding and taking on an assistant. The people I was speaking with were not aware that HMRC has very strict criteria which they use to determine whether an individual can be classified as self employed, and that to fail to employ someone and pay them through the PAYE system is a serious offence. The HMRC website provides a simple checklist that employers can use to determine whether someone working for them is classed as employed or self employed http://www.hmrc.gov.uk/employment-status/#1