Purchase of Annual Leave

Sloopy14

Hi. I work for a London Borough Council and want to purchase Annual Leave. I have been given a price for this but the flexible working policy is not clear on if this is a Gross Cost or Net and if the cost is deducted from my Gross salary or my Net salary. It its the latter it would appear that I would pay tax or order to get this benefit. Or is it a salary sacrifice scheme where the cost should be detucted before paying tax?

westv

I think you might have the wrong forum.

born_again

Would suggest that, this is a question for the HR team to deal with.

MallyGirl

I purchase extra annual leave via salary sacrifice (along with pension) and the documentation is very clear on that. Your HR team should be able to answer this

leosayer

My employer does it by simply reducing my gross salary for the month.

As a result, everything that results from that is reduced accordingly ie. income tax, NI, employer's NI, my salary sacrifice and my firm's pension contribution.

Sloopy14

Thanks Leosayer and Mally Girl. 

So it seems the purchase cost them should be taken from gross pay and not net? 

Marcon

Sloopy14 said:

Thanks Leosayer and Mally Girl. 

So it seems the purchase cost them should be taken from gross pay and not net? 

That would be the logical approach, but probably wise to check direct with your particular employer to be quite sure (and it'll also mean you can check that what they actually do is what they say they do - mistakes and misunderstandings do happen!).

Hoenir

Financially it's a deduction from gross pay. Or more correctly put an adjustment.