Buying holiday deductions

We are looking to roll our a buying/selling holiday scheme t our employees. When someone buys holiday, we will calculate the amount owed by them and deduct this in 12 equal installments over the year. These deductions will not be made via a salary sacrifice. In this case, so the deductions need to be considered for national minimum wage purposes, or can they be ignored? Thank you.

Hi Jade,
A deduction by the employer, or a payment from the worker to the employer, is considered to be for an employer’s ‘own use and benefit’ where they are free to use that money in any way they wish.
If the employer deducts the amount and has use and benefit of the deduction, it will reduce NMW pay.
For more information, please refer to:
Calculating the minimum wage
HMRC cannot comment on an employer’s specific arrangements without undertaking a full National Minimum Wage investigation.
HMRC can only provide general advice and signpost to guidance.
f you require advice relating specifically to working arrangements you have in place or are considering introducing, then please seek independent legal advice.
Thank you.