Holiday Pay Question

[Dow Jones]

Another contender

I wonder if he has to do a 'balanced scorecard' too

[Ardesco]

Does anyone know the situation as another fellow contractor gets paid by his agency for holidays.

I bet he really believes that he is a contractor too.....

[Moscow Mule]

It may or may not be a more tax efficient way of getting a small portion of your money than if it was just paid as normal - anyone know?

I believe that if you don't take enough holiday in the year then they (umbrella) will still pay you what was held back, kind of like payment in lieu of holidays for "normal" employees.

You get taxed on your holiday pay, the same as your normal pay.

IIRC, you're no longer allowed to do payment in lieu of holidays unless you're opted out of the European Working Time Directive or some such.

They will pay you when you leave though.

[Ruprect]

[WotNxt]

I know there is a supposed entitlement to Holiday Pay which has been mentioned before in this forum but who pays it ?

I have contracted since June last year and work for agency but get paid by my umbrella company. Now i know my umbrella company has holiday fund for me to use but they fund this from my earnings anyway and it is like a christmas fund where they keep back some of my money. Surely this is not the holiday pay some people say contractors are entitled too ? as this is my money in the first place.

Does anyone know the situation as another fellow contractor gets paid by his agency for holidays.

The umbrella company is your employer. Just like any employer they will use some of their income to fund employee holidays. The good thing with umbrella companies is that you only fund YOUR OWN holiday pay. You only get holiday entitlement from an umbrella because it is a legally necessary part of your employment terms.

It may or may not be a more tax efficient way of getting a small portion of your money than if it was just paid as normal - anyone know?

I believe that if you don't take enough holiday in the year then they (umbrella) will still pay you what was held back, kind of like payment in lieu of holidays for "normal" employees.

[Sockpuppet]

Does anyone know the situation as another fellow contractor gets paid by his agency for holidays.

Temp worker

I sure hope he doesn't think he is outside IR35.

[tim123]

How else do you expect it to work?

All the money that you are paid is "YOUR" money, there isn't any magic money from anywhere else.

tim

[nblyth]

No answers anyone ?

[nblyth]

I know there is a supposed entitlement to Holiday Pay which has been mentioned before in this forum but who pays it ?

I have contracted since June last year and work for agency but get paid by my umbrella company. Now i know my umbrella company has holiday fund for me to use but they fund this from my earnings anyway and it is like a christmas fund where they keep back some of my money. Surely this is not the holiday pay some people say contractors are entitled too ? as this is my money in the first place.

Does anyone know the situation as another fellow contractor gets paid by his agency for holidays.