Buying Holidays

HI - no, holiday isn't a benefit in kind. Buying and selling holiday is just a contractual arrangement between the employer and employee (although if you include the ability to sell holiday, technically the individual will pay tax on it, but that's just because their taxable pay will be higher).

You just need to work out the 'price' you charge for each additional day. At my last organisation, it was 1/260th of gross pay for each extra day. It does get complicated if people change their hours during the year.

HI - no, holiday isn't a benefit in kind. Buying and selling holiday is just a contractual arrangement between the employer and employee (although if you include the ability to sell holiday, technically the individual will pay tax on it, but that's just because their taxable pay will be higher).

You just need to work out the 'price' you charge for each additional day. At my last organisation, it was 1/260th of gross pay for each extra day. It does get complicated if people change their hours during the year.

Hi Tersa, thanks for coming back to me on this. Did you previously spread the cost across the year or is it possible just to deducted as a monthly payment or a lump some, regards Andy

Hi Andy - we calculated the total amount and then divided it by 12 and deducted an amount each month.
You just need to be a little bit careful when someone leaves midway through the year - you can't just pro-rata it as you normally would as they are entitled to the total amount they have bought at that point.

So for example, if someone buys 3 days and then leaves exactly 6 months through the leave year, they will have actually paid for 1.5 days. So when calculating their annual leave on leaving, you pro-rata their main allowance and then add 1.5 days on.

Alternatively, you add the amount they would have paid for had they stayed to the end of the year and then pro rata the total.

Hi Teresa
I am also looking at introducing such a scheme. Does anyone have a policy they are happy to share on this as it would be really helpful?

any luck with a policy?