Holiday pay in advance

From 1 April 2018 you are able to choose how you tax salaries or wages paid in advance. You will be entitled to treat the payment as a lump sum instead of spreading it week by week as at present. The first way will be quicker, but the tax deductions will be higher. The second way can lead to a lot more work if another payment is made to the employee during the period of the holiday. If that happens, you have to add together the two payments and recalculate the tax.

 

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