The (paid) holidays, above, include bank holidays and/or other times when your business is closed. This, of course, still means that (unless you close your business more often than most) you will have to give your employee some additional paid days off during term time to comply with the statutory holiday requirements. If you want to avoid doing this you can (subject to any existing contractual agreement) change the employee's 'theoretical' working year to 'term time plus the first week of the summer holidays'. You then give your employee bank holidays (and/or other closure days) off but also give them the first week of the summer holidays off (i.e. you pay them for that week). That paid week will then account for either 4 or 5 days (as appropriate) of the employee's holiday and restrict the number of term-time days for which you will be without their services. (However, because this way of doing things extends the 'theoretical' working year by one week, it also slightly extends the employee's holiday entitlement. To balance things up, it would be necessary to make a small additional payment equivalent to 2 hours 20 minutes pay which could be added to the pay for the week of holiday taken at the first week of the school summer holidays).
Chris