Should holiday pay be taxed more?
kmb500
Posts: 656 Forumite
Hi
I get paid weekly, its £382 per week which after tax, is £328. I have got annual leave payments to me this week & next week, as I havent taken any holiday but still accrued holiday pay, and the extra pay has been less than £328.
My payslip this week just shows I've earned £771 and after tax that is £592.
So I was expect 2x £328 = £656. 60 quid short for the week. I did speak to the payroll people but they didnt seem to understand what I was saying; or maybe I didn't understand what they were saying.
I understand that as you earn more, you get taxed more, because there's no 0% tax amount like there is with initial earnings.
Is this right that the holiday pay is just treated like extra work? (I havent done any extra work)
Thanks :-)
I get paid weekly, its £382 per week which after tax, is £328. I have got annual leave payments to me this week & next week, as I havent taken any holiday but still accrued holiday pay, and the extra pay has been less than £328.
My payslip this week just shows I've earned £771 and after tax that is £592.
So I was expect 2x £328 = £656. 60 quid short for the week. I did speak to the payroll people but they didnt seem to understand what I was saying; or maybe I didn't understand what they were saying.
I understand that as you earn more, you get taxed more, because there's no 0% tax amount like there is with initial earnings.
Is this right that the holiday pay is just treated like extra work? (I havent done any extra work)
Thanks :-)
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Comments
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Are you working through an agency and paid by them or are you employed directly by the organisation which requires the work?
Are you being paid for the holiday you have accrued but are not going to be able to take before the end of the holiday year? What holiday have you taken during the year (including bank holidays if you would otherwise have worked them)? What happens about the Christmas period - is there an office/works closure?0 -
Companies are not supposed to pay accrued unused holiday unless leaving.
What sort of contract do you have?
As for the tax/NI each week you get some on 0%.
Tax is roughly £240 at 0% so all your extra will be at 20%
NI extra will be at 12%0 -
I am employed by the agency. I haven't taken any holiday, I've been working for 8 months which they told me i've accrued 15 days annual leave.General_Grant wrote: »Are you working through an agency and paid by them or are you employed directly by the organisation which requires the work?
Are you being paid for the holiday you have accrued but are not going to be able to take before the end of the holiday year? What holiday have you taken during the year (including bank holidays if you would otherwise have worked them)? What happens about the Christmas period - is there an office/works closure?
I was (wrongly) told that I would get any un-used leave, paid at the end of the calendar year as a lump sum. I've now been told that was not correct so they're paying me 5 days extra this week, 5 days next week, and 5 days the week after.
My office is closed over xmas yes, wouldn't earn anything for the closed days due to just being paid for the work I do on a weekly basis. (I fill in a timesheet every week)
Its a temporary contract with an agency.getmore4less wrote: »Companies are not supposed to pay accrued unused holiday unless leaving.
What sort of contract do you have?
As for the tax/NI each week you get some on 0%.
Tax is roughly £240 at 0% so all your extra will be at 20%
NI extra will be at 12%
I understand that if I did overtime, and actually worked 74 hours this week (double 37 hours), then all the extra 37 hours would be taxed at 20%.
But I have not worked any extra hours, its holiday pay.0 -
Its a temporary contract with an agency.
I understand that if I did overtime, and actually worked 74 hours this week (double 37 hours), then all the extra 37 hours would be taxed at 20%.
But I have not worked any extra hours, its holiday pay.
HMRC don't care whether it is holiday pay or not - they tax just according to how much pay you have. Everything over £12500 a year will be taxed at 20%.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
How many days a week are you working?
There are ways to fiddle if not "full time"
They should not be paying 5 extra days on weeks you are working more than 2 days.
If 8 months how have they worked out 15 days should be closer to 18days if working 5days a week.0 -
never mind... shortly after writing this thread, I have been politely informed that the company has today gone bankrupt! So probably never gonna see the wages they owe me...
Good timing...0 -
Agency should already have the money for accrued holidays.0
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never mind... shortly after writing this thread, I have been politely informed that the company has today gone bankrupt! So probably never gonna see the wages they owe me...
Good timing...
Good, that means the insolvency service will advice the NI fund to pay youMagicshark wrote: »Oh...my! While I was reading all this thread, I became interested in the end of that story, but, as I see, the end is sad.
What are you going to do with that? Will you go to the court?
Why would he or she go to court?!...0 -
I managed to speak to them before they closed up shop, and they said something along the lines of: "When the company assets are valued, I will be a creditor on the insolvency company"
I have no idea what any of that means and don't know what employer bankruptcy procedures are. I will have a look online.0 -
So the agency company is insolvent?0
This discussion has been closed.
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