Advanced Holiday Pay ...

RJames

Please could some shed some light the policies regarding advanced holiday pay?
How does it affect NI, Tax, Pension contributions? 
Are there any advantages of receiving holiday pay in advance of whole weeks taken off?   

This is more for hourly waged and weekly paid, as salaried staff tend not to fall into this particular approach.  In a historical sense, with a cash based society it certainly makes sense that if an employee is to not be at work on their pay day then they receive their pay (cash) before it is required. However in today's society most pay, regardless of frequency) is paid automatically into an account therefore the employee does not need to be at the place of employment to receive it and in fact can access it anywhere in the world. 

Thrugelmir

Other than you receive the money in advance of your holiday leave. There's no actual advantages. You'll pay tax and NI based on the gross amount paid. Any tax overpaid will self correct in the following pay periods. 

RJames

So if there is no tax, NI nor Pension payments to be corrected then there will be no payslip, until the employee has worked another week in lieu? 

Please could someone clarify that it appears there is no opportunity to opt out of advanced holiday pay which doesn't benefit a weekly paid employee?  

chrisbur

If done correctly there is usually no significant difference., I have seen the occasional example where it is not done correctly and that has made a difference.  If you can give an example of it being paid in advance ( taxable gross with advance payment tax paid NI paid tax code)  then I can tell if it is being done correctly. 
Whether you can opt out of this is between you and your employer, paying in advance or on the week the holiday occurs are both acceptable to HMRC (subject of course to it being done correctly).

EDIT   Can also be some difference to NI when there is a marked difference between the holiday pay and the pay for the week it is paid with using one of the ways of calculating it that HMRC allow.
Tax will never be affected.