WP holder - Selling my holidays

[noor1034]

Not sure this is a benefit query however I will explain situation.

I am in UK on Work Permit with my salary clearly stated on Work Permit issued by UKBA.

My company has just announced a new policy that an employer can sell up to 5 holidays and amount will be shown in pay slips (and eventually in P60).

I am confused because If I sell my holidays my pay slip and P60 will not match with my salary listed Work Permit.

Any advice ?

[noor1034]

Any help please

[nothing_to_declare]

Don't worry, the amount for holidays which you sell will appear on your payslip and will be taxed/NI deducted etc in most cases - unless you are using the sold holidays to buy other benefits - like medical/dental insurance.

Your P60 will have you annual income, which will include the amount for the holidays sold.

So, the figures from the 12 months payslips will match the P60.

It is common for people to get salary hikes, bonuses or other incentives during the year and the annual income goes up than what's listed in the initial work permit.

One more thing, be aware that if you are selling holidays, your employer might sneakily deduct the employer's NI as well from the amount. So you end up paying Tax, employee's NI and employer's NI on that amount leaving a very small amount to take home.
If you buy other benefits using the sold holidays (provided you company's benefits scheme has this provision) than you can get away with paying employer's NI on that amount.