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Employer buying two weeks leave
Comments
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It sounds like he has put it on your payslip as a salary increase by using your standard code instead of a one off code. Depending on how close to the next tax band you are it could have tricked the payroll software into thinking you have become a higher rate tax payer.
IF this is the case then you can get a refund of the overpaid tax. Either the software will correct it in a couple of months or you can contact the Tax Office after April and ask them to do a calculation for the refund.
The OP said their code was 747L ie no W1/M1 at the end, so tax should work on a cumulative basis. So shouldn't get taxed at 40% at all, should all be 20%0 -
Until the OP comes back with calculations then everyone is just guessing.....
OP - Come back with the calculations. I assume you have been earning £311/week all year?0 -
Right.... seems people are getting off the actual question asked.
Go to http://listentotaxman.com/index.php and put your figures into that. As someone has previously said, it could be the payroll software being used thinking you have had a rise and when putting £900+ in for the week it is assuming that is what you will earn for the rest of the year. Still seems incorrect though but see what calculations she comes back with and post them here.
That's no use for one-off payments. With a cumulative tax code (as most people have - ie no W1/M1 at the end), for an accurate answer it would need to know gross pay that week, pay period, total taxable pay to date and total tax to date on the last payslip. Otherwise it won't give an accurate answer.0 -
Right.... seems people are getting off the actual question asked.
Not really.
Given that it is unlawful to do what is being proposed it is therefore outside the OP's contract. So debates about the "right" amount to be paid and how much tax & NI should be deducted are a bit theoretical!0 -
Lets be absolutely clear here. Working Time Regs 13 (9) and 13A(6) explicitly prohibit the statutory leave allowance being replaced by a monetary payment in lieu. It is simply not acceptable to say that you are not in a position to take that leave - it is for your own health and safety and must be taken, and the employer must make appropriate arrangements. Whether or not you agree with it, that is the law.
The only circumstances where that does not hold true are at the end of the contract, or in relation to the non-statutory part of your leave allowance providing your contract explicitly allows that to be done.
Otherwise, you are asking us (and HMRC) to collude with you and your employer to break the law.0 -
Remember though the 5.6 weeks includes bank holidays, so if the OP is off on bank holidays then it's 4 weeks or 20 days statutory leave on top assuming a 5 day week.0
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Lets be absolutely clear here. Working Time Regs 13 (9) and 13A(6) explicitly prohibit the statutory leave allowance being replaced by a monetary payment in lieu. It is simply not acceptable to say that you are not in a position to take that leave - it is for your own health and safety and must be taken, and the employer must make appropriate arrangements. Whether or not you agree with it, that is the law.
The only circumstances where that does not hold true are at the end of the contract, or in relation to the non-statutory part of your leave allowance providing your contract explicitly allows that to be done.
Otherwise, you are asking us (and HMRC) to collude with you and your employer to break the law.
Perhaps they could get round this through a contract change? The WTD seems to only require one rest day a week, so if the OP and his/her employer agreed a 5.5 or 6 day week contract (assuming it's 5 at the moment) there would be plenty of scope to use up the 28 days leave throught the year...0 -
But is the OP working 7 days a week? If not, why can't the person who looks after the livestock on the other days cover for holidays?
Or am I being dense?0 -
What a nanny state! You will take leave whether you want to or not. It's unbelievable.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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