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Being paid for untaken holidays

3 replies

saythatagain · 20/09/2006 14:07

I have two weeks holiday not yet taken; as things stand at the moment, I would prefer to be paid for them, which I know is an option. My question is, the amount of tax I will pay on top of my usual due to an increased amount in my salary. If I ask for it to be paid 2/3 days per month will that reduce the amount of tax I pay or not?

OP posts:
CarlyP · 20/09/2006 14:08

wouldnt reduce the tax, doesnt matter how you get paid.

PrettyCandles · 20/09/2006 14:09

I think you'll pay tax at the standard rate for the amount you earn. Unless, that is, the holiday payment would take you over the limit for your tax bracket and into the higher rate bracket. Spreading it out won't make any difference if you're on PAYE.

saythatagain · 20/09/2006 14:10

Thanks CarlyP

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