Consultant Contract - One Client - Full Time

agrinnall

It's a pretty badly worded contract (or at least, that clause is). I worked as a contractor for 11 years in the 1990s and 2000s, much of it for the same client, but at no time would the contract every contain the word employee or say anything about holidays.

There are certainly strong indications that it is in reality employment rather than self employment.

captainflashheart

Thank you all for your help.

I'm payed a set-monthly sum, from which I'm encouraged to pay my own HMRC contributions (which is stipulated in the contract).

I'm set-up as a Sole Trader.

The only reference to 'employee' rather than 'consultant' in the contract is the paragraph regarding holiday above.

From the above comments, I can assume the contract I'm working from is a complete mess, or unclear at best. I have no doubt that my employers/client have constructed the agreement so as to alleviate any responsibilities as regards HMRC their end. Given that I'm expected to work full time, on the premises, payed on a monthly basis on a year-long contract, is the addition of holiday to contract unusual?

Thank you again.

ruperts

Sounds like you're risking being caught by IR35 and could potentially find yourself with a big tax bill to pay, so for that reason I'd be inclined to consider yourself lucky to have been paid for 15 days holiday and let the rest go.

trailingspouse

IR35 is hugely complicated (please google it, you need to know this stuff).

But basically it's all about whether HMRC think you are employed or self-employed. So - does the company tell you what to do and when to do it? Do they provide the equipment you need in order to do it? If so, you begin to look like you're employed. On the other hand, if you are pretty autonomous in what you do and when you do it, and provide your own equipment, then you are likely to be self-employed. It's still HMRC's decision at the end of the day though.

Think about a plumber coming to your house to do some work. They're self-employed. You wouldn't expect to have to provide them with equipment, and they are totally able to say to you 'I can't come next week, I'll make a start a week on Tuesday', or whatever. And you certainly wouldn't be telling your plumber how to do the job. You don't get involved in your plumber's tax affairs, and you don't expect to pay them when they're on holiday.

There are grey areas - my OH works as a consultant, but has to use the laptop provided by the client because that's part of their security policy. But within the remit of the job he decides for himself what needs doing, he is at liberty to work for other clients alongside his main client, and can take (unpaid) leave whenever he wants (he gives them as much notice as he can, as a courtesy, not because he has to).

Sorry that your simple question about paid holiday has turned into something a lot bigger.

motorguy

ruperts wrote: »

Sounds like you're risking being caught by IR35 and could potentially find yourself with a big tax bill to pay, so for that reason I'd be inclined to consider yourself lucky to have been paid for 15 days holiday and let the rest go.

The odds of that happening are fairly remote as your accounts would need to have been investigated by HMRC and typically its not worth their hassle as they have much bigger fish to fry.

motorguy

captainflashheart wrote: »

Thank you all for your help.

I'm payed a set-monthly sum, from which I'm encouraged to pay my own HMRC contributions (which is stipulated in the contract).

I'm set-up as a Sole Trader.

The only reference to 'employee' rather than 'consultant' in the contract is the paragraph regarding holiday above.

From the above comments, I can assume the contract I'm working from is a complete mess, or unclear at best. I have no doubt that my employers/client have constructed the agreement so as to alleviate any responsibilities as regards HMRC their end. Given that I'm expected to work full time, on the premises, payed on a monthly basis on a year-long contract, is the addition of holiday to contract unusual?

Thank you again.

The whole thing sounds like a mess. I dont think they should be paying you directly and leaving you to pay your own tax, given its a fix term contract.

I think they're leaving themselves very exposed on my levels TBH.

Have you spoken to your accountant about it?