Holiday Pay and Contractors

9 August 2009

The recent Lords ruling in the case of Stringer v HMRC means that some contractors (so called permtractors) may be able to claim holiday pay from the client they are working for.

Contractors may also be able to make backdated claims in excess of the usual maximum pay out of a years salary.

Companies utilising the services of contractors therefore need to consider IR35 when employing the services of contractors.

If you are a company using contractors please contact PayMatters on 0800 121 6513 to ensure you cannot be penalised for using contractors.

Contractors working through Umbrella Companies are unlikely to be able to make claims as in their employment contract states that part of their pay is deemed to be holiday pay (and therefore they have been paid for holidays rather than earning entitlement).