changing jobs and holiday pay

[Eve1]

I am starting a new job in 4 weeks time and am looking for advice. I have 5 weeks holidays saved (3 weeks accrued and 2 weeks through my salary being reduced since Jan on a scheme called term time).
I am starting my new job but would like to still take holidays in July and August as planned. However as I will not have worked up annual leave I will have to take unpaid leave. I presume my old job will pay me for my holidays owed to me but it will be taxed at 40% which would mean I couldn't afford to take the 5 weeks as planned unless it somehow balances out.

Is there anyway of minimising this or can I request the tax back at the end of the year?
thanks

 

[mathepac]

You will pay full tax, PRSI and USC on the pay-in-lieu of holidays with your old employer. This is unfortunate but there is nothing I am aware of that can change the tax and other deductions. It's treated as a once-off taxable payment to you. If you take unpaid holidays in your new job, assuming your are not being taxed on an emergency or week 1 basis, your deductions should automatically reduce as your pay does. The calculations are done on a YTD basis. Using basic assumptions, it should be possible for your own payroll department to see what the extra payments followed by the reduced payments will mean for you financially.

In summary will you have a big payday with higher tax and other deductions on leaving the current job, followed by smaller pay-days with small payments and smaller deductions (or even refunds) when you take leave, All other thinks being equal, your year-end deductions should balance out, but sit down with someone and do your own P21 end-of-year balancing statement to see. HTH