Buying annual leave

[Confusedgoosey]

My company has just brought in the option to by annual leave at a rate. Its the annual salary/260 but I feel a bit thick, say my salary was 45k, that's 173 a day. But is it? How is it it different to unpaid leave? I assume I pay less tax though?! There was no info at all with the new policy and we don't actually have a hr dept to ask as it's outsourced, but a bit embarrassed to ask as surely it's not that complicated! The amount comes off the next wage slip so I want to make sure I understand before I do it!

I think it's usually pretty much the same as unpaid leave, and you don't pay tax or NI to n the amount. A bit like salary sacrifice for your pension, it all goes on your pay slip as figures subtracted from your monthly salary before tax is calculated. One small advantage can be that your official salary stays the same, so if you move jobs you have a theoretical higher salary than it f they just took it off the salary - although obviously if a mortgage company wants to look at pay slips it is clearly a reduction.

Main advantage is that the cost is spread over 12 months whereas unpaid leave is deducted in whichever month it takes place.

Yes it's just the same as unpaid leave but the deductions are spread throughout the year. Another small advantage is that the deductions are calculated at the start of the year so if your salary increases at a mid year review or you get promoted, your deductions don't increase accordingly that year.

I do shifts of different lengths, so I look at it if I book my 12 hours shifts off, I’ve actually gained as my bought days were bought as 7.5 hour shifts!

Mine is spread over 6 months from June, which just feels like a big hit even though I could (& never budget) for it during the first 6 months.