This week Fund My Contractor had a query from one of the agencies using the model regarding the charging of holiday pay on a PAYE contractor. The agency had engaged a new client and when they did their AWR checks they found that the other workers got an additional 4 days holiday on top of the regular 28 days per year which meant the percentage of 12.07% they usually used was incorrect.
Fund My Contractor showed them how to calculate the correct percentage based on 32 days instead of 28 days which came to 14.04%. The agency now know how the calculation is done and are ensuring that they and their client remain compliant with AWR.
If you need advice or want to see how Fund My Contractor can help you get in touch via our contact form or alternatively you can call us on 0845 8811 112.