The company I work for started using this “holiday pay fund” scheme in April this year. At the time, I was dubious and after Googling around I found some concerns about, if not its legality then certainly the morals of employing it in my case.
Sure enough, as you can see in the picture, barely 6 months later the Government want it stopped.
Now, I know you’re thinking, that this is an unusual thing for me to comment on, but did you spot the real reason?
Yes, that’s right!
A widespread scam* in which employers and staff avoided national insurance on holiday pay is been stopped.
Sheesh! A schoolboy error, or what?
If you go there now, you’ll find it has been fixed, though sadly they havent changed the “last updated” stamp or owned up to the error 🙂
*Scam is the BBC’s word, not mine, please don’t fire me!