Calculate cash value of untaken holidays

dont_use_vistaprint

If an employee is on a salary and has 25 days plus b/holidays leave but earns additional holidays through evenings and weekends, that can be cashed in or taken, how should you calculate the day rate if cashing in

Salary/47+(8/5)/5 or Salary/365 or Salary/365.25 !

If the employee pays higher rate tax, are there any ways to reduce the tax paid if cashing in?

Thanks

Ozzuk

I'd have thought the best people to ask would be your employer. I know my company has made special payments in lieu of leave accrued before (above standard leave), but they really don't like doing it and instead try to put a limit on maximum hours you can accrue.

Comms69

A company can have whatever rules it wants out holidays above the statutory minimum, so it's impossible to answer.

Annisele

I agree with Ozzuk and Comms69 on the "how much will I get" part.


On the "can I reduce the tax paid" - pension contributions are usually the easiest way to do that, but whether that's open to you depends on how close you are to pension contribution limits.

dont_use_vistaprint

I checked with an HR manager, the formulae used in the UK is typically Salary/260, as salaries in the UK are normally based on working 5 days a week and include payment for paid annual leave and bank holidays.