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Buying Annual Leave - FAQ's

1. Q. Can I buy single days, or can only blocks of weeks be purchased?


A. You’ll be ask to select the number of hours you wish to purchase in the I Trent system (not days or weeks). There is currently no maximum number of hours that can be purchased in any one leave in line with the University’s current objectives. The University does retain the right to amend this at any time in the future.


2. Q. How do I apply?


A. Firstly, discuss with your Line Manager and complete the application form available on your I Trent Self Service portal.
Your line manager will then receive the request to review and either approve or decline after which it will be forwarded to HR.
If approved, HR will provide you with a salary sacrifice agreement to review and e-sign in I Trent .


3. Q. When can I apply?


A. You should make your request before the start of the leave year during the communicated window (usually June/July). You should ensure that your manager has enough time to consider the request and how it can be accommodated.


4. Q. How will I pay for the additional leave that I buy?


A. You will pay by reducing your salary until the end of the annual leave year equivalent to the salary for the number of hours requested. The payments will be spread evenly over the year from the date on which the leave takes effect (12 payments from August).


The ability to buy additional leave is via a salary sacrifice arrangement. Salary sacrifice is an agreement between the University and the staff member to vary the terms and conditions of employment to reduce the entitlement to cash pay, in return for non-cash benefit. The non-cash benefit in this case is additional annual leave. The salary sacrifice arrangement is financially beneficial as the non-cash benefit (additional leave) is exempt from tax and national insurance contributions.


5. Q. How much will I save on the cost of buying additional days, given that they are purchased via a salary sacrifice arrangement?


A. Additional annual leave is not a taxable benefit, so there is no income tax or national insurance (NI) payable on the value of the days bought. This means that the net cost is reduced by up to 33% for the basic rate tax-payer and 41% for a higher rate tax payer. Individual can consider utilising the salary calculator referenced, or other similar online calculator to work out the savings likely to be received based on their pay and tax position.


6. Q. Is there any other costs involved?


A. No – there are not additional costs.


7. Q. What impact will buying additional leave have on my pension?


A. There will be no impact upon your pension. Your pension deductions will continue to be made from gross pay.


8.. Q. Is there a maximum number of hours I can purchase?


A. No– currently the University has opened up the amount individuals can apply for and there is no maximum number of hours specified. The University reserves the right to amend this as needed in the future.


9. Q. I work part-time, are the days pro-rated?


A. you’ll be required to select how many hours you wish to purchase in the system and if approved these will then be added to your annual leave balance to utilise around your part time working pattern.


10. Q. Do I need special reasons to buy additional leave?


A. No.


11. Q. Is there a length of service requirement to buy additional leave?


A. No, any staff member can apply as long as they meet the eligibility criteria as outlined in the policy.


12. Q. Can my request to buy additional leave be rejected?


A. Yes, if the request cannot be accommodated, for example, because of the operational needs of the work area, then your line Manager has the right to reject your application and discuss the reasoning for this with you.

13. Q. Can I carry over the bought leave into the next leave year?


A. No, the leave must be used in the leave year that it was bought unless there were exceptional circumstances that prevented the leave being taken. It is also assumed that the additional bought leave is used first.


14. Q. What happens if I am sick during the leave?


A. Normal rules would apply as detailed in the Attendance Management Policy as available from the HR Department.


15. Q. When making the application do I have to specify when I intend taking the additional leave?


A. This would be beneficial for your Manager in considering your application, and may form part of the discussion you may have with your Manager, although this policy does not stipulate that specific dates have to be identified when making the application.


16. Q. What happens if I change my mind once the additional leave has been approved and deductions from pay have commenced?


A. Once an application has been accepted it is a binding agreement and cannot be altered unless exceptional circumstances exist. These circumstances are referred to as key life-style changes, which would include marriage or divorce, severs illness of either of you or a member of your family, having to reduce your hours of work or pay, or the potential job loss or either you or your partner.


17. Q. What happens if I move post during the leave year?


A. Your annual leave and bought annual leave balance will continue with you into your new post (and would be adjusted as required if any terms changes e.g. working hours, length of contract)


18. Q. What happens if my rate of pay changes during the leave year, although remaining in the same post, for example, receipt of a pay award?


A. The value of the bought leave will remain the same, based upon the salary payable when the agreement was entered into. The University does however reserve the right to re-calculate the value of the deductions.


19. Q. Does this policy mean that I can sell some of my leave?


A. No, it is not possible to sell your leave.


20. Q. Are my entitlements to state benefits affected by buying additional leave?


A. If you are in receipt of benefits such as Child Tax Credits or Working Tax Credits the payments are based upon your income for the previous tax year. If you have bought additional leave and are making a new claim then you should use your revised pay figure when making the application. Help and advice is available via the website www.hmrc.gov.uk.


21. Q. What happens if I go on a period of unpaid leave?


A. You will be allowed to suspend salary sacrifice payments until you return to work. Benefits such as Statutory Sick Pay and Statutory Maternity Pay will be calculated on the reduced gross salary which may result in a lower value of these benefits. If you do not then return to work, any outstanding monies will be collected from final salary.


22. Q. I have more than one post with the University, will I be able to use my bought leave entitlement in all roles?


A. No, the additional entitlement is post specific and on a pro-rata basis. A separate request would need to be made for the other roles occupied.


23. Q. My Line Manager has authorised my application, does my Head of School/Director need to approve also?


A. No, the system will require your line manager to approve the application, although they may wish to share requests with the Head of School/Director for review (particularly where a high volume of applications are expected across any one School/Department).

24. Q. What happens if I leave the University during the payment period?
A: I Trent will automatically deduct the remaining monthly payments due for the bought annual leave from your final salary, and where your normal annual leave is adjusted pro rata, any bought leave would still show in full on your record and as part of your leave entitlement total

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