Carry-over of unused annual leave

The rules that would have limited the rights of employees in key industries to carry forward any unused annual leave will be delighted by the announcement made two weeks ago. This will mainly apply to workers in key industries such as food and healthcare.

Workers who have not taken all of their statutory annual leave entitlement due to COVID-19 will now be able to carry it over into the next two leave years, under measures introduced by Business Secretary Alok Sharma Friday 27 March.

Currently, almost all workers are entitled to 28 days holiday including bank holidays each year. However, most of this entitlement cannot be carried between leave years, meaning workers lose their holiday if they do not take it.

There is also an obligation on employers to ensure their workers take their statutory entitlement in any one year – failure to do so could result in a financial penalty.

The new regulations will allow up to four weeks of unused leave to be carried into the next two leave years, easing the requirements on business to ensure that workers take statutory amount of annual leave in any one year.

This will mean staff can continue working in the national effort against the coronavirus without losing out on annual leave entitlement.

The changes will also ensure all employers affected by COVID-19 have the flexibility to allow workers to carry over leave at a time when granting annual leave could leave them short-staffed in some of Britain’s key industries.

Latest Blog
10
Sep

HMRC may be signing you up for Making Tax Digital

Making Tax Digital for Income Tax became compulsory for the first group of sole trade...

Read More
09
Sep

Recovering VAT on pre-registration costs

Businesses that register for VAT may be able to reclaim VAT paid on certain goods and...

Read More
09
Sep

Incorporation Relief may reduce your CGT bill

When a sole trader or the partners in a partnership transfer a business to a limited ...

Read More
09
Sep

When do you pay Stamp Duty Land Tax?

Stamp Duty Land Tax (SDLT) is a tax that may apply when you buy land or property in E...

Read More