POLICY HUB
A: At least four weeks of the 5.6 statutory weeks statutory leave employees are entitled to should be paid at the ‘normal’ rate, which includes any payments which are intrinsically linked to the role, that are regularly paid or which relate to professional or personal status. It’s then the employer’s choice as to whether they pay all holiday at this rate, or whether they pay the remaining 1.6 weeks at ‘basic’ rate only. The same rules would apply to any leavers, so calculations should be completed in the same way when an employee leaves the business. Further information is available here: https://ow.ly/h03250WPxig. n
submission deadline for that year. As a result, we didn’t initially submit a P11D for this employee as we didn’t think we needed to. How do we now proceed with submitting a P11D for the 2023/24 tax year? A: To fix an error, report benefits and expenses for earlier tax years or inform HMRC about any changes, the following correction forms must be completed: l https://ow.ly/qroE50WPxcL l https://ow.ly/KLU150WPxer. Examples to help with this process can be found here: https://ow.ly/kqvj50WPxfX. Holiday pay calculations for leavers Q: An employee recently left the company, and during their employment, they received the ‘normal’ rate of pay for any holiday they took. When their final pay was processed, outstanding holiday pay they were owed was paid at a ‘basic’ rate and not at the ‘normal’ rate. Should payments for outstanding holiday entitlement not taken upon leaving employment be paid at the ‘normal’ or ‘basic’ rate?
covering all items involved. Please see here for further information: https:// ow.ly/8AUH50WPx1u and https://ow.ly/ xRYt50WPx3Q.
How is tax and NI calculated on employee accommodation and travel costs relating to the Christmas party?
Submitting P11Ds for a previous tax year Q: We prepare annual P11Ds for directors and previously, an employee who was living in accommodation owned by the company. This employee left during tax year 2024/25. In tax year 2023/24, the company also covered the electricity costs for this employee. However, we were only made aware of this following the P11D
When an employee leaves a business, and they have outstanding holiday pay, how is the amount calculated?
NATIONAL PAYROLL WEEK 2025
Full coverage coming in November 2025 issue
Remember you can watch all
the free webinars from the
week at npw.org.uk
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| Professional in Payroll, Pensions and Reward |
Issue 114 | October 2025
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