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• # 89197
• Fri 08 Mar 2013 01:50 PM

I was hoping someone may be able to help with a Question of a potential client, his staff are paid PAYE weekly in cash, he wants to know how much holiday pay inadvance he is required to pay at any one time, as he has someone who would like to take 3 weeks holiday in one go. leaving him to pay 4 weeks pay, end of last week before holiday plus 3 weeks holiday pay. Can't seem to find anything on HMRC apart from number of day holiday employee is entitled to. Any help appreciated.
 Tony

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• # 89200
• Fri 08 Mar 2013 03:09 PM

Hi Tony,

This will depend on employees contract of employment and what it staes ref holidays & holiday pay.
Some employers just keep paying weekly (if paid through bank).
There is no problem associated with paying holiday pay in advance as the majority of employers do this anyway.
As long as employer is giving employee the statutory 5.6 weeks holiday per annum then there is no 'legislation' stating how this is paid - as I said depends on terms & conditions of employment.
If employee is paid over tax & ni threshold and the payroll is processed using software then the pay period would have to be advanced by the number of weeks taken to ensure employee is not taxed for the whole amount in one pay period. 
Hope this all makes sense to you. 
Marilyn     

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 89202
• Fri 08 Mar 2013 04:32 PM

The other thing to remember is that if the employee has not accrued the holiday entitlement, then the employer leaves themself out of pocket if the employee "does a runner". Most employers will only pay 1 week in advance - sometimes two.

• Ken Creek
  KJC Bookkeeping Ltd
  
  Providing Bookkeeping and Payroll Solutions to Sole Traders and Small Businesses for over 15 years 
  
  www.kjcbookkeeping.co.uk 

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• # 89206
• Fri 08 Mar 2013 05:05 PM

Thanks Marilyn and Ken, have passed on this information to would be client and he will have to check his employee contracts and go from there.
Tony

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