As the rules regarding IR35 tighten and more and more contractors start to switch to working under an Umbrella Company there will be several questions that crop up time and time again.  One of those is just what is holiday pay?

For many contractors who like to think of themselves as self employed the notion of holiday pay (i.e. pay you receive for statutory time away from work) is a foreign concept!  However when working under an Umbrella Company your status is that of an employee and as such you are legally entitled to a minimum of 5.6 weeks paid holiday per year,  this is known as annual leave.  In order to pay this statutory requirement your Umbrella Company will deduct an amount from the gross contract value each time an invoice is settled which should then be paid to you and shown separately on your payslip.  

At Quad Management we never withhold your holiday pay, it will be paid to you during every pay cycle and shown separately on your payslip.  Please see this article for details on other statutory pay elements you may be entitled to.