Employer buying two weeks leave

iamnotamused

My employer and myself agreed he would buy 10 days annual leave rather than my taking time off.

I'd appreciate help working out how much will be swallowed by contributions.

My gross weekly (five days) pay is £311.61. Tax code 747L

Thanks for any help :-)

Googlewhacker

Unless the 10 days are over the statutory minimum of 5.6weeks (28 days for full time workers) then technically you and him cannot agree to do this.

However I would expect it would be the same tax and NI that you currently pay

iamnotamused

I appreciate that but taking 28 days leave is nigh on impossible when working with animals on a small farm.

Hypothetically, if he was allowed to do so how much would I lose in contributions? I imagine Tax and NI would be deducted from the lot as it'd be paid on top of wages ie. no tax allowance.

20% tax and 12% NI from the lot?

Thanks

Googlewhacker

iamnotamused wrote: »

I appreciate that but taking 28 days leave is nigh on impossible when working with animals on a small farm.

Hypothetically, if he was allowed to do so how much would I lose in contributions? I imagine Tax and NI would be deducted from the lot as it'd be paid on top of wages ie. no tax allowance.

20% tax and 12% NI from the lot?

Thanks

I would expect so and I actually agree with you that you should be able to sell some but legally you can't because some employers would be unscrupulous and force employees to sell their holiday!

Uncertain

iamnotamused wrote: »

Hypothetically, if he was allowed to do so how much would I lose in contributions? I imagine Tax and NI would be deducted from the lot as it'd be paid on top of wages ie. no tax allowance.

20% tax and 12% NI from the lot?

Thanks

Yes, for tax and NI it would be like overtime. Tax would be at whatever rate you normally pay (presumably 20%). NI can be more complicated but shouldn't be more than 12%..

However, as stated this would be illegal on the part of the employer.

iamnotamused

Thanks, the reason I asked is he came back with a figure of £275. £18 more than a normal weeks nett pay...

He's deducted about 55%.

VfM4meplse

If you can't trust your employer to make the right wage calculation, then why would you not take your full 28 day entitlement?

zagfles

If you get paid weekly then tax would be 20%, NI would be 12% on most of it and 2% on some of it. Exact figures depend how the 10 days pay is worked out. Eg if it was an extra 2 weeks pay, then you pay NI at 2% on £117 of it as you'd be over the NI UEL of £817pw.

If you get paid 4-weekly/monthly then you'd pay 12% NI on the lot.

iamnotamused

VfM4meplse wrote: »

If you can't trust your employer to make the right wage calculation, then why would you not take your full 28 day entitlement?

Because I have livestock under my care and do actually care.

zagfles

iamnotamused wrote: »

Thanks, the reason I asked is he came back with a figure of £275. £18 more than a normal weeks nett pay...

He's deducted about 55%.

Doesn't sound right at all. 10 days pay should be worth at least 2 weeks pay gross, ie £623, and there's no reason to deduct more than 32% tax & NI (probably less as per my other post)

So you should get at least £423

iamnotamused

zagfles wrote: »

If you get paid weekly then tax would be 20%, NI would be 12% on most of it and 2% on some of it. Exact figures depend how the 10 days pay is worked out. Eg if it was an extra 2 weeks pay, then you pay NI at 2% on £117 of it as you'd be over the NI UEL of £817pw.

If you get paid 4-weekly/monthly then you'd pay 12% NI on the lot.

Thanks :-)

I'm paid weekly so would imagine it is being paid as an extra 2 weeks

It's difficult to be precise as payroll is handled by a friend of the boss who does the accounts as a favour. She is going to email me her calculations.