Employment Overlap

Leemondo1

Please could you help me with an enquiry?

 I have a redundancy date of December 18th 2020, I have received and signed and returned my Notice of redundancy.  My official leaving date is December 18th 2020.

However, I have 4 (Four) weeks holiday remaining from my 2020 allowance. I have been authorized by my line manager to use ALL these holidays as I wish to before I leave (rather than take the holidays as pay and get taxed on them).

 So, I am collating ALL my unused holiday hours together , and using ALL of them before I leave my current job role / current employer, therefore my last shift will be a month earlier than my actual leaving date, which will be November 18th (therefore technically still employed until December 18th by current employer) 

My final redundancy payment is due the same date (18th December), also on this date I will also receive my P45 from previous employer.

 

My issue or question is :       I have a new job / new employer with a potential start date of November 30th , this would mean a small period of ‘Employment Overlapping’ during the first weeks of December.  I know there are TAX implications having two jobs overlapping etc, but want to know are there any actual employer / employee implications to either OLD or NEW employer?

 I have spoken to my line manager and senior manager to explain this (the info above) I just wanted to double check , are there any issues ?   

 Thank you for your help,

Savvy_Sue

Shouldn't be, if your current employer is OK with it. Technically they could cancel your holiday with appropriate notice and call you in, and then pay you for the holiday, but unlikely. 

When you start new job, you ask for an HMRC New Starter Form (used to be known as P46). You fill that in and say you have another job (because at that stage you do). You're taxed at BR. 

When you get your P45 at the end of December, you give that to your new employer. You may end up being taxed at BR in January too, but then the details on the P45 are applied and you should be moved to 'normal' tax code. If that doesn't happen, you contact HMRC and say you've now only got one job. 

Sandtree

An employer can cancel a previously agreed period of annual leave however they must give you notice equivalent to your holiday duration. So if you say you're taking a 4 week holiday they'd have to give you 4 weeks notice to cancel it therefore if you accept the job now and agree the start date you have a few weeks of brown trouser wearing in case your employer changes their mind.

Have you looked at both the contracts of employment? Whilst clauses that prevent you working for a competitor etc don't stand up too well when its 6 months after you've left they are very much enforceable whilst you are still in employment. You should probably double check if you'll be in a breach of contract situation so at least you make an informed decision.

Why not just ask for your end date to be brought forward by four weeks and take the holidays as paid in lieu? That way you avoid the overlap and still get the same monies.

getmore4less

(rather than take the holidays as pay and get taxed on them).

if you take them off you get taxed anyway, just not extra pay, you would be better off getting paid for the days.

Cancelling holiday notice can be contractual so the normal notice of the holiday length can be Zero notice.


As for work overlap 
Don't forget they can withdraw the redundancy right up to the termination date,  them knowing you have a job would be a risk with some employers

this.
Why not just ask for your end date to be brought forward by four weeks and take the holidays as paid in lieu? That way you avoid the overlap and still get the same monies.

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chrisbur

Sandtree said:

Why not just ask for your end date to be brought forward by four weeks and take the holidays as paid in lieu? That way you avoid the overlap and still get the same monies.

Changing the end date may not alter the gross pay but could alter the net take home pay if it results in a change in the number of pay periods that the money is spread over.  Depending on earnings this could increase or decrease the net pay.

Sandtree

chrisbur said:

Sandtree said:

Why not just ask for your end date to be brought forward by four weeks and take the holidays as paid in lieu? That way you avoid the overlap and still get the same monies.

Changing the end date may not alter the gross pay but could alter the net take home pay if it results in a change in the number of pay periods that the money is spread over.  Depending on earnings this could increase or decrease the net pay.

Not in the round... tax is ultimate based on how much you were paid in the financial year and whilst its proxied by how much you earn in a given month it will be corrected later when earnings are lower. Plus by having salary from two jobs at the same time will similarly cause net pay issues that will correct in time.

chrisbur

Sandtree said:

chrisbur said:

Sandtree said:

Why not just ask for your end date to be brought forward by four weeks and take the holidays as paid in lieu? That way you avoid the overlap and still get the same monies.

Changing the end date may not alter the gross pay but could alter the net take home pay if it results in a change in the number of pay periods that the money is spread over.  Depending on earnings this could increase or decrease the net pay.

Not in the round... tax is ultimate based on how much you were paid in the financial year and whilst its proxied by how much you earn in a given month it will be corrected later when earnings are lower. Plus by having salary from two jobs at the same time will similarly cause net pay issues that will correct in time.

Sorry should have said I was not talking about tax.  A change in the number of pay periods will as you say not affect tax but it will affect national insurance.  NI is not like tax it is not based on an annual figure but on a pay period figure and having one less pay period will result in the loss of one NI allowance where no NI is deducted and one 12% band.  The result is for lower earners the loss of an NI allowance will increase the NI paid but for higher earners the loss of a 12% band will offset this and if earnings are high enough will eventually result in NI being lower.