Programme Date has moved - charging for cancelled Family Holiday.

**Old Greg** · 26 March 2019, 21:23

Originally posted by Grinch2017 View Post

Hi.

Hoping someone can help.

The main implementation date for the Client I am working for has moved. It now coincidences with a week where I have already agreed I will not be able to provide services (it’s my family holiday). I have it confirmed in writing that I will not be available during this time.

Today the Director of my client has asked what it would take for me to provide my services during this time. He is willing to pay for the cancelled holiday and an element of compensation to cover the fact I would have to pay more for the holiday later in the year.

Discussing with my family and husband understands that after 3 years I would like to see it through and we could move our holiday without too much hassle.

Question - is there any implications of my charging a client for a cancelled holiday and charging a premium for this. I have certainly paid this premium in the past to suppliers to get their staff to cancel holidays. Would anything they pay for the cancelled holiday be considered ‘income’ and therefore subject to all taxes?

Is there any advice on how to tackle this.

Many thanks.

Your Co can invoice Client Co. The tricky question is whether you can expense the new holiday as a legitimate expense without being really taxed etc. Probably one for your accountant.

**northernladuk** · 27 March 2019, 01:31

You could just have a week off later and bleed the radiators

**psychocandy** · 28 March 2019, 15:26

More important here is what the family especially spouse thinks about it to be honest. I've been in that situation and it would have meant not going on the holiday at all (because wife works part-time so would have struggled to reschedule).

Depends on the hassle it causes. Can't they just do an ad hoc payment to you in addition? Don't see why its complicated.

In my case they offered an extension with the proviso that I cancel the holiday they knew I'd booked. (I often give clients a heads up if I know its likely to be extended even if its past end of current gig). Nuts that was.

I pointed out that I'd lose probably half the contract income for the 3 months on the cost of the holiday I'd paid in full for, so no thanks. Let alone the grief off the family which would have been massive! They had a big moan about it but dropped it in the end. Honestly, couldnt believe they thought I'd do it - even if I was a permie.

**Grinch2017** · 30 March 2019, 09:36

Got it sorted.

Daughter is happy as she is going on the holiday with her friend. Me and husband are ok as we already have another holiday the month after.

Have agreed a fixed price SOW with the client to cover the live events and have covered the cost of the cancelled hokiday in the fixed price amount. So no issues with IR35 - I took advise from QDOS and they said it would be problematic to explicitly charge for it.

Ya for the advice.

**TheCyclingProgrammer** · 31 March 2019, 10:33

Originally posted by Old Greg View Post

Your Co can invoice Client Co. The tricky question is whether you can expense the new holiday as a legitimate expense without being really taxed etc. Probably one for your accountant.

OP cannot expense the cancelled holiday costs. They can only invoice the client a extra premium and reimburse themselves from this extra company income by paying an extra dividend.

**mudskipper** · 31 March 2019, 21:24

Originally posted by Grinch2017 View Post

I took advise from QDOS.

advice

You even got it right in the next sentence

**psychocandy** · 2 April 2019, 09:56

Each to his own but I wouldn't cancel any plans I'd made with my cat just because client had changed things. Unless there was mega bucks in it for me.

**TwoWolves** · 2 April 2019, 10:30

The one time in my contractor career that I took no summer holiday so that I could work on delivery (I hadn't book it yet so no financial loss), the project was canned that September - I got two weeks notice.

I swore I would never do that again.

**Grinch2017** · 2 April 2019, 13:33

Originally posted by psychocandy View Post

Each to his own but I wouldn't cancel any plans I'd made with my cat just because client had changed things. Unless there was mega bucks in it for me.

I wouldn’t normally but there are circumstances that mean this time round I am willing to do so.

And yes - client is paying an attractive premium for me to provide my services over the live events.

Programme Date has moved - charging for cancelled Family Holiday.