Many contractors will be using an umbrella company for the first time, and need to understand how the holiday pay mechanisms work. There are two common methods used: rolled-up holiday pay, or accrued holiday pay. It’s important that contractors understand how each mechanism works and also ensure that they both take their holiday and ensure it gets paid to them if they leave the umbrella company. Use it, or lose it!
The Compliance Files: Holiday pay when using an umbrella company
Dave Chaplin and Crawford Temple from Professional Passport explain how holiday pay works when using an umbrella company, including advice about the most common methods, and what happens if you leave the umbrella company.
