Paying back holiday pay...

Boombands

Hello.

I am being made redundant. I am entitled to the statutory holiday for each year, but due to a long trip through January/February I have taken OVER my entitlement by 11 days thus far.

I have to pay this back, but would like to know if I pay back NET or GROSS amounts. Effectively - do I pay back the amount in full (pre tax) or the amount I recieved - the taxed amount?

Any help or indeed, links to websites (govt, union) covering this topic would be much appreciated.

Thanks - Emma.

anamenottaken

Simple thing would be for payroll to deduct the over-payment by way of adjustment to the final amount of pay due to you. This would be 11 days gross pay. Not so much you paying it back as them not paying you for 11 days.

katsu

You will pay back what you had - so the actual cost to you will be the net value of the days IYSWIM.

eyeinthesky

katsu wrote: »

You will pay back what you had - so the actual cost to you will be the net value of the days IYSWIM.

This is wrong, you will have to pay back the gross amount. The tax deducted is between you and the taxman.

anamenottaken

Further:

When you took the holiday, you were paid your gross salary less any tax and NI due at that time.

When you leave (sounds like that is still to be in the future), there will be a deduction (gross) for the number of days holiday taken but not by then accrued. So no tax or NI will be due for the deducted days.

Given that you took holiday in the last tax year and would have paid NI at that year's rates, given the increase in NI this year you will have gained by paying less NI (and having the funds earlier). (Though the increase in personal allowance may offset this!)