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Holiday pay on leaving

(4 Posts)
ichangedmymindagain Sun 06-Nov-16 21:39:46

I've had to leave my nanny family as mum is going on maternity leave . All is okay apart from my unused holiday pay .I have 3days left unused and on telling hrmc it seems that I will loose near 1 days pay in tax . I.e.
Usually weekly(3days) amount after tax £265,holiday pay (3days) £204 .
Any idea why .. so difficult to get through to tax office .

nannynick Sun 06-Nov-16 22:30:23

If you are owed 3 days holiday and you are paid weekly and work 3 days, then in that last week you would get 6 days worth of pay, thus you earn more that week and pay more in income tax and NI.

Income tax is paid on your earnings in the entire tax year, so if you don't do any work in a week/month then your tax free allowance carries over to the next time you are paid, adjusting the taxes so that your payments are correct (this is why you get a P45 and have to give that to your next employer).

If you have been in the job for over two years then ask about redundancy pay, as it sounds like the job is redundant.

Karoleann Sun 06-Nov-16 23:16:44

Maybe you haven't accrued the holiday pay - work it out from when you first started working for your employer.

ichangedmymindagain Mon 07-Nov-16 08:48:43

Thanks for the replies . Sorted now ,I get paid monthly but my holiday money (3days,which I had accrued)was added to the last week of my pay ,so doubling the amount . Unfortunately I haven't been there over two years so no redundancy pay .
Sad to leave the family especially with a new baby having just arrived but cannot be out of work for the next 6months .

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