Holiday Pay help

Beamerbee

Hi,
I am currently working as a temp through Hays and i receive a set amount per hour and a reduced amount is taken for holidays per week.

What i'm trying to work out is i already get taxed on my normal wages so why would i be taxed on holiday pay?
Hays didn't deduct holidays that i was taken over several weeks and then when i contacted them said that they the system wasn't set up correctly and they would manually pay me the holiday pay for 17hrs.

Say my holiday rate is £10 per hour then can i ask how would this be calculated? as after tax, NI and SL i only received £100 net pay (£170 was gross)

Thank you in advance

Guest101

Look at it this way - if you were salaried at say £1000 a month, you would be taxed normally for anytime you took days/weeks holiday at work.

Beamerbee

So are you saying this practice is normal to cut pay by 50%
Would you be happy if they only paid £500 in a month as apposed to £1000 just because you took holiday?

sangie595

The amount taken for holiday is pre-tax, is it not? That is the normal arrangement. So that amount is set aside and taxed as income when you take holidays.

getmore4less

If you are getting £10ph for holiday pay then that should be your normal rate as well.

as you are quoted a top rate that includes holidays that should be £11.207

so each hour worked you get £10 gross and £1.207 goes in the holiday pot to be paid when you take the holiday/leave.

Without real numbers from a pay slip with gross holidays and deduction and the pay slip for the 17hrs it will be difficult to tell if they got it right.