Mandatory holiday for limited company contractors - British Law

**WTFH** · 6 March 2018, 11:18

Originally posted by Esp View Post

Hi guys,

I have a question about holiday for contractors having limited companies.
I have a contract for set amount of hours and prediction is that I will take all of them end of November. Client asked me if I would accept additional hours to cover December, if there is any need to do so.
This would mean I take literally few single days off this year (bank holidays, maybe not even all of them) but I don't mind and client would be happy as well. My question is, am I obligated by the British law to take a set minimum amount of a mandatory holiday per year, or can I work even every single day as long as me and my client agree for that? Am I also obligated to take bank holidays off? especially that my project involves comunication with different countries, which don't have bank holidays even if we have them?

My query concerns just the British Law as I do understand my contract.

Thank you in advance.

You're a contractor. It's up to you how many days you work each year, or how many non-billable days you take each year. Your contract may specify how many days (or hours) a client will pay you for, but that is to do with your contract, not the law..
If you're working as a Ltd, then it's a simple as that.
If you're working through an umbrella then they may be paying you based on you taking a certain number of days per year (for tax reasons). Check with your umbrella.
There is no British Law that dictates how many non-billable days a contractor takes per year. Your accountant should have been able to tell you that.

If you are a contractor, you are not "taking a holiday" you are having non-billable days.

https://forums.contractoruk.com/busi...ny-i-work.html

**adubya** · 6 March 2018, 11:18

It's your company's decision as to when it's able to supply services to your clients.

If you want you can offer to supply services 365 days of the yr. You'd be crazy as a one-man outfit, but it's your call.

**vwdan** · 6 March 2018, 11:20

If you're a Director of your own Ltd company then you can work as many hours and days as you see fit. Bank Holidays don't really have any legal status anyway as far as I know.

You go and earn your money.

**Esp** · 6 March 2018, 11:32

Thanks a lot for all replies.
That was exactly my impression.
Actually it was my agency that informed me that by the Law (not according to the contract, but British law) I must take 2 weeks off per year which was weird in my opinion. Obviously I am aware what my contract says, but it doesn't say anything about holiday oobligation.
I already contacted my accountant to clarify that (waiting for the feedback) but decided to ask you too.

Thank you once again.

**northernladuk** · 6 March 2018, 11:38

You need to think hard about what you are, what you deliver and to who. If you had this clear then you wouldn't have needed to ask. It's pretty fundamental so people should know but it's surprising how many don't.

Stop thinking about holidays and time off from you client. That's just wrong. You deliver work per day. You are unavailable to deliver work the days you don't want to be there. Forget holidays. That is what YOU do when your company isn't delivering to a client. Once you start talking holidays and time off you've forgotten what you are and these types of situations will be confusing.

Remember the difference between you being and employee and your LTD that is contracted to the agency. Get that right you'll know exactly how to respond when some idiot agent peddles you that rubbish.

Although your accountant will know as it's a bit obvious, you've engaged them to do your accounts, not run your business. They aren't your natural go to for questions like this. (Which is a turnaround for me but there you go)

**washed up contractor** · 6 March 2018, 11:45

"British Law"!? Oh deary me. Another bottom feeder.

**Esp** · 6 March 2018, 11:46

Originally posted by northernladuk View Post

You need to think hard about what you are, what you deliver and to who. If you had this clear then you wouldn't have needed to ask. It's pretty fundamental so people should know but it's surprising how many don't.

Stop thinking about holidays and time off from you client. That's just wrong. You deliver work per day. You are unavailable to deliver work the days you don't want to be there. Forget holidays. That is what YOU do when your company isn't delivering to a client. Once you start talking holidays and time off you've forgotten what you are and these types of situations will be confusing.

Remember the difference between you being and employee and your LTD that is contracted to the agency. Get that right you'll know exactly how to respond when some idiot agent peddles you that rubbish.

Although your accountant will know as it's a bit obvious, you've engaged them to do your accounts, not run your business. They aren't your natural go to for questions like this. (Which is a turnaround for me but there you go)

I do agree. Please note I still learn. I relay on other people - my accountant and the agency mostly but decided to come back here as I simply don't think what the agency says is correct - I have doubts. I'm repeating what the agency said - that by the british law I am obligated to take at least 2 weeks off per year, but that was so weird to me. I'm waiting now what my accountants say (they are usually very supportive and also provide support in this sort of areas, for new contractors) and will go back to the agency asking where that information about the holiday came from. We had a meeting yesterday and there was the third party present during the meeting - me, agency and the client, to clarify things, so that was the meeting for all of us and not just me. If the agency lies to both me and the client, I'm not sure how to even have an open and honest dialog with them.

**northernladuk** · 6 March 2018, 11:55

Originally posted by Esp View Post

I do agree. Please note I still learn. I relay on other people - my accountant and the agency mostly but decided to come back here as I simply don't think what the agency says is correct - I have doubts.

As I said, your accountant does your accounts and your agent is there to do nothing but pull your pants down and line his own pockets. Relying on the agent to learn how to be a contractor is possibly the worst thing you can do.
You are a contractor now, your own business, in charge of your own destiny. That also means you are in charge of your own learning so need to go out and research it for yourself as well. There are plenty of articles out there about what a contractor is, how they should engage with a client, how to run the LTD company as well. You really need to know that you own a business that's in a business to business contract and are no longer an employee. It's pretty fundamental as it's what you do.

I'm repeating what the agency said - that by the british law I am obligated to take at least 2 weeks off per year, but that was so weird to me.

So have you done any of your own research on this? Or have you just fired it off to a guy that does your books and asked a bunch of strangers?

**Esp** · 6 March 2018, 12:07

Originally posted by northernladuk View Post

As I said, your accountant does your accounts and your agent is there to do nothing but pull your pants down and line his own pockets. Relying on the agent to learn how to be a contractor is possibly the worst thing you can do.
You are a contractor now, your own business, in charge of your own destiny. That also means you are in charge of your own learning so need to go out and research it for yourself as well. There are plenty of articles out there about what a contractor is, how they should engage with a client, how to run the LTD company as well. You really need to know that you own a business that's in a business to business contract and are no longer an employee. It's pretty fundamental as it's what you do.

So have you done any of your own research on this? Or have you just fired it off to a guy that does your books and asked a bunch of strangers?

I did the research but again, I have to relay on what I see and read. Even if it is here or online.
What I think, and I'm quite sure I am right, is I take time off when I want to but decided it will be when my contracted hours end. I haven't found anything - zero - about the obligation of taking a mandatory holiday in the UK by contractors, I checked GOV websites and read everything I found online. ZERO found so decided to ask you and the accountant. Agency already said their bit. Who else left?

I will have almost whole December off, that's my plan, because I will take all my hours and finish the project at that time. However, there is a chance that the project will be a bit extended, unfortunately my hours don't cover that. The unspoken expectation is that I will do that additional work anyway when I get the new contract for another project in January but I said out loud this won't happen this time (happened two years in a row). I said "fine, but that means in January I start new project, not doing the job for December". I told my agency I'm not going to do the work for December if I wasn't at work and I wasn't paid for that period. And that was the moment when the company (client) asked the agency if can give me an overtime in that case in December.

My understanding is I take time off between contracts and in a meantime as well, if I want to, as long as it doesn't affect the project I'm responsible for. But the agency says there is a mandatory holiday for everyone in the UK (not just contractors) minimum 2 weeks per year which to me doesn't make sense because if I want and can work, then whos business is that to tell me >NO<?

I agree with you and disagree with the agency but if I don't know the Biritsh law, I wasn't in a position to defend myself. But I knew there was something fishy about that.

Mandatory holiday for limited company contractors - British Law