Pay in lieu of holidays - is this taxable

Batman_100

Hi, 

I’ve recently been made redundant after the company I worked for ceased trading. I’ve received my final pay packet from the administrators and done some calculations to check their breakdown of how much pay in lieu of holidays I’m owed against my own calculations. I’ve worked out how much they’ve paid me per hour of unused holiday is equivalent to my hourly gross pay rate rather than the net pay rate? 

Is this normal? I’m asking as I’d always assumed pay in lieu of holiday is still taxable income. I was unable to find anything online about this and wondering if anyone can offer advice? 

thebrexitunicorn

Yes, pay for holiday accrued but untaken when the employment ends is taxable. 

General_Grant

Batman_100 said:

Hi, 

I’ve recently been made redundant after the company I worked for ceased trading. I’ve received my final pay packet from the administrators and done some calculations to check their breakdown of how much pay in lieu of holidays I’m owed against my own calculations. I’ve worked out how much they’ve paid me per hour of unused holiday is equivalent to my hourly gross pay rate rather than the net pay rate? 

Is this normal? I’m asking as I’d always assumed pay in lieu of holiday is still taxable income. I was unable to find anything online about this and wondering if anyone can offer advice? 

As well as receiving the "pay packet", have you received a statement of how it was calculated?
I would expect them to show the different elements of your pay separately and to deduct tax and NI from anything other than actual redundancy amount under £30K.

Batman_100

General_Grant said:

Batman_100 said:

Hi, 

I’ve recently been made redundant after the company I worked for ceased trading. I’ve received my final pay packet from the administrators and done some calculations to check their breakdown of how much pay in lieu of holidays I’m owed against my own calculations. I’ve worked out how much they’ve paid me per hour of unused holiday is equivalent to my hourly gross pay rate rather than the net pay rate? 

Is this normal? I’m asking as I’d always assumed pay in lieu of holiday is still taxable income. I was unable to find anything online about this and wondering if anyone can offer advice? 

As well as receiving the "pay packet", have you received a statement of how it was calculated?
I would expect them to show the different elements of your pay separately and to deduct tax and NI from anything other than actual redundancy amount under £30K.

The administrators never sent me anything with my P45. I had to ask them for a breakdown of holiday pay and all they did was Email me a statement of how many hours holiday had been accrued on the termination date and how many had remained unused. Even then it took them 2 weeks to reply. I’ve asked them for a full breakdown but I’m not building my hopes up that I’ll get anything. 

James_Noble_Bolton

Hi there. 
As you might have read elsewhere, your redundancy settlement will not be taxable. 

However, any other pay, such as wages in lieu of notice and any other benefits such as holidays should be subject to all the usual deductions.