I'm very new to the contracting game so I apologise if the answer to my question is blindingly obvious.

I'm working away from the UK in the Netherlands on a 6 month contract that has been extended to 12 months. My contract with the accountancy firm - who set me up with my own 'company' and manage my pay - says that I'm entitled upto 20 days holiday at my standard rate. However, when I tried to claim my holiday pay, they said I wasn't entitled to it.

On speaking to them about it, they tell me that to receive holiday pay I have to set up a contingency fund from my monthly pay which can then used to cover the holiday pay (there's no mention of this in the contract, by the way).

Is this right? If it helps in answering the question, I was told that I am the 'owner' and, effectively, the 'manager' of the company. Further, I am the 'sole worker' while the accountancy company are the 'directors'. So whose reponsibility is all this?

On a related note, I was under the impression that it was no longer legal for one person to be the owner of a limited company (there must be at least two to cover work should one person be ill). If that's the case, it would suggest the above set-up may be dubious. Could anyone shed further light on this?

Apologies for the length of the question.

Many thanks.

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rambles