I previously used Sage Payroll system which allows for holiday pay plus wages to be spread over the number of tax periods required. ie one week wage plus 2 weeks holidays processed in advance over 3 week tax periods avoids employees getting heavy taxed by paying 3 weeks wages in the one tax period.
I moved from Sage Payroll to Kashflow Payroll last year and I had to deal with several complaints from the employees that their Christmas holiday pay was short as they were heavy taxed on with 3 weeks pay on the one pay period. Yes, the system sorts itself out regarding tax with the 1st wage in January, but that's no use to employees at Christmastime. It's a major flaw in an otherwise simple to use programme.
Thanks for your suggestion.
We are including this capability in the development of occupational holiday schemes which is already under way.