How many holidays does the contract state? Plus does the contract show they are for the 39 weeks or for a normal year? Also - I assume the holiday dates is just when they need to be taken.
-- Edited by Cheshire on Saturday 2nd of April 2016 07:00:37 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I have worked out for someone working the whole 39 weeks they would be entitled to 21 days which is 3/4 of the statutory 28 days as they only work 3/4 of the year. I have then used the following calculation
21 days holiday / 39 weeks x 30 weeks in employment = 16.15
HMRC Calculator gives me something totally different.
Assuming they are not getting paid their holiday as they go along which i know some pre-schools do then I would be inclined to agree with you Nikole:39/52(28) is 21 days, then apportion the 21 by 30/39 giving your 16.15 annual leave entitlement. Obviously you will need to deduct any of the bank holidays and other holidays that have been taken and paid for in that time. As Jo advises you will need to check the contract as this is for minimum statutory entitlement.
HMRC calculator threw me a little. Usually i would add the 21 days to the 39 weeks worked then divide by the year so it does work out that the holiday pay is spread out over the 52 weeks. Its a tricky one for this particular employee as pro-rata was originally calculated on a 40 hour week. Then after several weeks they reduced their hours so i had to recalculate the old pro-rata up to the point they changed their hours then calculate the reduced hours. Now they have left. It can get very messy!
I agree with Rob especially re the Bank holidays. Given its a non straight forward one I would probably get your client to agree before you set in stone with HMRC - just easier to sort now, if you have time before the RTI is due.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
