Q: Hi, I have a client and their staff member has 9 days of Alt Leave owing to her, of that 4 days were gained in the last 12 months so I understand that these cannot be paid out as under 12 months. However, the remaining 5 days can that be cashed up as one payment and paid to her in this weeks wages? Is there anything in legislation regarding paying this out as a lump sum?

A: Yes, is has to be taxed as an extra pay. It cannot be paid out less than RDP and it is part of gross for leave going forward (it is not excluded like one week of annual holidays cashed up).  It has to be recorded in the Holidays and leave record.