I assume that every country has some laws to prevent:
1) That actual employees are declared as independent contractors for the purpose of evading the payment of social security and medical taxes.
2) That the individual that gets paid also declares the revenues and pays the corresponding income taxes.
3) Money laundering and financing terrorist activity.
In the case of my country in Eastern Europe these laws are so tight that they require either: - the independent contractor to be officially registered with the governmental authorities and authorized as such, or - to be considered as an employee, which has to sign with the business a paper contract that also has to be registered with the authorities, and for which social security and medical taxes must be paid.
This makes impossible running in my country a business based on the model that you are also interested in.
Could you discuss what the law allows in UK, Ireland, Cyprus or other European country?