There is a special concession which ends on 30th October 2012 which allows holiday pay to be paid without the Employee or the Employer paying any National Insurance.
Its been used in the Construction Industry for years and orginally employees had physical cards and collected stamps, it much easier now with companies like B&CE doing all the work for you.
Check to see if your business sector qualifies
Click to access niFurtherInfo.pdf
http://www.hmrc.gov.uk/paye/payroll/special-pay/holiday.htm#x4
steve@bicknells.net
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