It’s that time of year again when the sun shines brighter and for longer (mostly), and we start to think of grabbing some well-earned rest and relaxation.

However, holidays for contractors are never quite as simple. You’ve got work to complete for a start, and taking time out might not be practical in terms of the timing of the project.

For contractors working via an umbrella company, there’s also the subject of holiday entitlement and holiday pay.

Umbrella contractors get holiday pay rights.

For contractors, holiday entitlement and holiday pay can be an ambiguous issue.

To be clear, if you’re working through an umbrella company and your payment has tax and national insurance deducted via the PAYE scheme, you’re most likely an umbrella company employee.

As an employee, you will qualify for employment rights, including holiday and statutory holiday pay.

Big Fish - Ensuring contractors get their holiday pay entitlement.

Holiday pay is usually accrued as you work and paid when you take a holiday. All of which should be clearly shown on your payslip.

Unfortunately, it’s been reported that some contractors have lost out on accrued holiday pay because they’ve been unaware of holiday pay rules and umbrella processes. This is why Big Fish urges contractors to double-check their employment contracts.

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