Holidays ― provided or paid for

By Tolley in association with Philip Rutherford
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The following Employment Tax guidance note by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

  • Holidays ― provided or paid for
  • Introduction
  • Provision of holiday
  • Reporting requirements

Introduction

This guidance note covers situations in which employers either provide or pay for an employee’s holidays. For the tax implications of holiday pay, see the Holiday pay guidance note.

Provision of holiday

The payment for, or provision of, a holiday by an employer to an employee always gives rise to tax, NIC and reporting requirements. There are no exemptions within any of the tax legislation for this benefit.

Vouchers

The provision of holiday vouchers to an employee gives rise to the tax and reporting requirements outlined below.

Employer pays for the holiday

Which of the parties arranges and how the employer actually pays for the holiday determines how the benefit is reported and taxed. The reporting requirements associated with the variations are outlined below.

Reporting requirements

Where an employer provides a holiday benefit to an employee then it can be included

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