Contractor doctor: how do holidays work when contracting?

InTouch Accounting



Dear Contractor Doctor

I am a permanent employee who is under real threat of redundancy and considering a move to contracting. I have no idea what the implications are and have found your site extremely useful. I have a question relating to holidays:

How do they work? Do you have to organise your holidays "in-between" contracts? (Assuming of course that you can get back-to-back ones). Say for example, I got offered a contract next week but I have holidays booked up within the contract time offered.

So, if I take a 2 week break does that automatically push the contract expiry date back by 2 weeks?

Thanks for your help!

Mark Gorman

ContractorDoctor says:

Thanks for your question.

Sorry to hear you are facing redundancy. Still, you might find that a move to contracting will be great for you!

Regarding your question, contractors can take as many holidays as they like during the year, provided that during contracts the client agrees to the time off. This works exactly the same way as permanent staff, except you are unrestricted as to the number of days you can take off.

Most clients will agree to time off during a contract, expect for short contracts of a month or less.

You can organise holidays in between contracts, but if I would suggest you only do this if you are planning on taking a month or more off. Bear in mind that you will have downtime on return from a holiday whilst you search for a new contract.

Even for short holidays of 2 weeks it is unlikely you will be able to line up a new contract before you leave due to the short lead times clients have for contractors.

Thus, other than for long holidays the best method to avoid downtime is to take holidays during existing contracts.

Your contract end date will not change due to holidays taken because you are contracted between certain dates, rather than for a set number of days. Whilst unlikely, your client might want you to sign a small extension if you take the time off towards the end of a contract. If they do then this can be quite useful for avoiding downtime. You could even engineer this situation with a contract you were not going to renew, to avoid downtime - that would be a neat trick!

For more information see our article Contracting - Taking Holidays and Time Off

Good luck!

Contractor Doctor

Published: Monday, March 26, 2007

© 2012 All rights reserved. Reproduction in whole or in part without permission is prohibited. Please see our copyright notice. If you want to use any content you have seen on this site then please request our media pack and ask for details of our Content Licencing Service.


Readers Comments...


  
Bookmark and Share
  
     
  

Latest Site Updates

Does HMRC even know where its ‘better administration of IR35’ target is? Does HMRC even know where its ‘better administration of IR35’ target is?

If contractors agree to trial HMRC’s new IR35 framework for 12 months, how are we going to measure if ‘better administration’ has been achieved?

ContractorCalculator: Contracting news in brief - 18/May/2012 ContractorCalculator: Contracting news in brief - 18/May/2012

News this week includes the latest IR35 insights; P35 advice; contractor demand data; partial financial sector recovery; & HMRC service improvements.

P35 guidance: unsure contractors should answer ‘no’ to service co question, says HMRC P35 guidance: unsure contractors should answer ‘no’ to service co question, says HMRC

Contractors are not legally obliged to answer the P35 question 6, ‘Are you a Service Company?’, and if they’re unsure should answer ‘no’.

No certainty from HMRC’s new IR35 framework, but the policy debate must be sustained No certainty from HMRC’s new IR35 framework, but the policy debate must be sustained

No certainty for limited company contractors yet, but the policy debate is far from over, say OTS Tax Director John Whiting and PCG’s Simon McVicker.


  
  

Twitter

  • Does HMRC even know where its ‘better administration of IR35’ target is? http://t.co/L3MuqlFz

    6 hours ago

  • IT leads surge in Scottish contract recruitment : Bank of Scotland Report on Jobs http://t.co/QIrLKFGb

    7 hours ago

  • How might government's 'secret plan' to link civil service earnings to location affect public sector contractor rates? http://t.co/fJClb0HG

    Sun, 20 May 2012

  • IT contractors have a key enabling role to play in the UK retail sector's 'third revolution' http://t.co/zjx00EfY via @MT_editorial

    Fri, 18 May 2012

  • ContractorCalculator: Contracting news in brief - 18/May/2012 http://t.co/SDkQNjdZ

    Fri, 18 May 2012

  • Uncertainty over Scottish independence 'harmful to Scotland plc' impacting on oil & gas decisions http://t.co/ZKo2jCsQ via @scotsmannews

    Fri, 18 May 2012

Follow Us On Twitter


  
     

  
  

Contractor solutions

Contractors Handbook AM Limited IR35 Test
  
Contractor accountants - pricing checklist
  

Contractor solutions

Parasol Group

Umbrella or Limited? Guidance on best options, and take home pay.

Choice Premier Pay+

Take home up to 85% of your pay. IR35 solution.

Contractors Handbook

The expert guide for UK contractors and freelancers

InTouch Accounting

Person to person contractor accountant. Free IR35 review.

Bedouin Group

No more IR35. Retain up to 85% of your earnings.

NA D J Colom Accountants Bedouin Group Contractor Financials NewsNow
  
Elevate

  

The UK's leading contractor site. Independently audited traffic (ABC) – 156,346 monthly unique visitors.