My employer has offered me the option to cash out some of my annual leave,(two weeks) but I’ve heard that it can be heavily taxed. I’m trying to understand how to reduce the tax — can anyone suggest ways to minimise it? like split payment or somethiing
It's not going to be taxed any different to normal income. It just increases your salary this year by two weeks pay ~ 3.8%
btw: You would have accumulated another ~1 day of leave during that two weeks if you actually took it as leave. If getting it cashed out instead you will lose that.
I recommend - take your leave. You only get one life, go enjoy your holiday.