Do all contract workers have their own companies, do their bookkeeping etc? Seems like a lot of hassle just to do gigs.
Bookkeeping is not too cumbersome, you just have to account for such tasks and their overhead in your hourly rate. Factoring all costs is the only big hassle, but after this, it's no hassle at all.
Rather that than fill in holiday forms, attend company meetings, have annual performance reviews etc etc.
I'm not going to jail anytime soon.