Tax on Hoildays payments

[MoneyM]

I have a good few holidays left over and my boss says he'll pay me for them in this months salary...

My question is would I be better off getting half in this months salary and half in next month thus not paying alot of tax on them or will it work out the same?

Thanks in advance.

 

[ClubMan]

You could pay less tax that way due to the budget 2008 tax changes. On the other hand if you are already over the 2007 employee PRSI threshold then if you get it all now you will pay less PRSI. You can probably work it out using www.taxcalc.eu by adding the relevant amounts to your total gross for 2007 and 2008 to see what the net effect is. I'm not sure if payment for holidays accrued but not taken in a specific tax year must be paid as salary in that year?

 

[MoneyM]

Thanks Clubman, he said he doesn't mind which way I want to do it, but I'd like to give the tax man less of my money!!!! Sorry I must be stupid but I haven't a clue....(God wish I paid more attention in Tax classes now!!!)

I am going on Maternity Leave in 8 weeks would that make any difference if I wait till next year as I won't be paying any tax for about 6.5 months?

Thanks again

 

[ClubMan]

I am going on Maternity Leave in 8 weeks would that make any difference if I wait till next year as I won't be paying any tax for about 6.5 months?

Do you mean that you will be on Maternity Benefit only and no partial or full salary during maternity leave? To get an accurate answer you would probably need to post details of your gross income for 2007 and likely gross income (including MB) for 2008 and any relevant details about your personal situation (e.g. married or single, husband's income etc.).