Most payroll software allows the recording of annual leave, but many do not accurately calculate the correct holiday pay, which is an issue.
Those 3 roles are all separate and different. Are you actually an employee? Have you, as Director, given yourself, as employee, an employment contract? If not, it doesn't apply. Neither does minimum wage. If you are genuinely an employee it may matter if you are paid different amounts each month. You also should record when you are on holiday in case there is a Health and Safety issue and you want to sue yourself for failing to provide a healthy and safe working environment. However, as I cannot see there ever being a random investigation of compliance - they will have their work cut out dealing with formal complaints of non-compliance, you are probably safe, unless you want to complain about yourself for failing to comply.
I thought it was just the payroll software that we use that was rubbish at that. Thank you for flagging! HMRC have the teeth to say which software is allowed for RTI submissions, so why can't they use their leverage to force payroll software manufacturers to calculate holidays correctly?
Because the data isn't there, quite often. Most employers pay monthly, holiday pay is calculated in weeks. Time on statutory pay is excluded from the calculation of the 52 week average, but requires a different calculation for rolled up holiday pay. Weeks with zero pay are excluded etc, etc. It would be doable, but it involves a lot of coding and it needs the employer to give more information than is needed just for payroll. Some software claims to do it, but I prefer to do it myself.
