On 4 November the Employment Appeal Tribunal (EAT) ruled that employers need to consider overtime when calculating holiday pay.
This new ruling means that workers with regular working hours, who work voluntary overtime, could qualify for holiday pay based on their normal average earnings – not just on their basic pay.
However, this only needs to be considered for the basic four week statutory holiday entitlement, not for the additional 1.6 week’s holiday or for any additional contractual holiday entitlement.
Employees can appeal for backdated holiday pay claims or future unpaid holiday pay if you don’t include overtime and commission, but only within three months of receiving their holiday pay.
In order to ensure your business and employees are covered, it is advisable to start including overtime and commission in your holiday calculations with immediate effect.
Also, HMRC's LET PROPERTY CAMPAIGN
HMRC has data relating to residential landlords both in the UK and abroad, and is comparing this with what individuals have or have not told them about their letting income.
Do you have a residential property which you let? Bring your tax affairs up to date before you are prompted by HMRC. If you don’t make a voluntary disclosure now and HMRC finds out later, you could get higher penalties and face criminal prosecution.