A welcome enhancement to the benefits package, giving employees some valued flexibility without creating burdensome administration
Holiday Trading
New flexibility afforded to employees in allowing them to buy or sell holiday has led to Holiday Trading becoming a very valued benefit. Employees may be planning a special trip and would like more days off, or they may need all the cash they can get, in which case they can sell some of their allocation.
Typically, employees can buy or sell up to 5 days but this will depend on specific circumstances. If employees buy extra days, the salary adjustment takes the form of a salary sacrifice, with resultant tax and NI savings for both employer and employee. If employees sell days, the value of the days is added to their gross salary, and tax and NI is payable in the usual way. Holiday days are normally valued at 1/260th of gross basic salary.
Fair Care can provide an outsourced solution for employers for the implementation and management of Holiday Trading. If you would like further information, please contact us.