Founder Iain Rangeley and Walter Keegan of Devon-based computer software company Grey Matter face a battle with the Department of Health and Social Security (DHSS). The company has 20 employees but no staff! All 20 employees are self-employed, looking after their own tax and National Insurance claims, with no safeguards, sick pay or maternity leave.

The employees, however, like this non-traditional contract. Grey Matter is run democratically, with employees given a pro-rata share of the month's profits. On a bad month they get paid less, which encourages a level of dedication.

Staff wellbeing is also a priority. The office cat has just had kittens which love to be petted. DHSS, however, says Grey Matter is breaking the law and must pay employees basic National Insurance contributions.