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Xearno Tools

UK Redundancy Package Calculator — what you actually take home

uk_redundancy_package
Read-only

Redundancy pay, notice and untaken holiday together — and which parts of it the £30,000 exemption does not cover. Being made redundant pays you three different things, taxed three different ways, and the letter usually quotes only the first. Statutory redundancy pay is tax-free, and shares a £30,000 exemption with any ex-gratia top-up. Notice pay is not covered by it — since the PENP rules a payment in lieu is taxed as earnings whatever it is called. Accrued untaken holiday is not covered either. So "redundancy is tax-free up to £30,000" is true of one component and false of the other two, and someone with twelve weeks of notice and a fortnight of holiday can be several thousand pounds out. This adds all of it up and splits the tax the way HMRC does, including the National Insurance boundary, which sits in a different place again. Northern Ireland is included, with its own higher limits.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
ageNoYour age when the job ends
nationNoWhere do you work? Northern Ireland sets its own, higher statutory limits: £783 a week and £23,490 maximum.gb
niRateNoYour National Insurance rate NI is due on notice and holiday pay, never on the termination payment — a different boundary from income tax.8
taxRateNoYour marginal income tax rate A large payout can push you into a higher band for the year; this applies one rate to the taxable part.40
exGratiaNoEmployer top-up above the statutory minimum (£) An enhanced or ex-gratia payment. Shares the £30,000 exemption with your statutory redundancy pay.
weeklyPayNoGross weekly pay (£)
holidayDaysNoUntaken holiday days owed
serviceYearsNoComplete years of service Only full years count for redundancy pay. Under 2 years there is no statutory redundancy — but notice and holiday are still owed.
noticeTreatmentNoHow is your notice being handled? Both are taxed as earnings. Since the 2018 PENP rules, calling a payment "compensation" no longer makes notice tax-free.pilon

TDQS

A4.3/5.0
Behavior5/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations only declare readOnlyHint=true and openWorldHint=false; the description adds substantial behavioral detail: statutory redundancy pay shares the £30,000 exemption, notice pay is taxable under PENP rules, untaken holiday is not exempt, and the NI boundary differs. It also notes Northern Ireland's higher statutory limits. No contradiction with annotations.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

At roughly 170 words, the description is longer than average but front-loads the core purpose and uses each sentence to explain a meaningful tax nuance or regional difference. It is appropriately detailed for the complexity of the calculation and contains no filler.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

The description thoroughly covers the tax logic, exemptions, PENP rules, NI boundary, and Northern Ireland inclusion. However, with no output schema, it never states what the tool returns (e.g., a breakdown of tax-free amount, taxable earnings, NI, and net take-home). This is a notable gap for a 9-parameter calculator.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

The input schema already provides 100% description coverage with detailed explanations for all 9 parameters, so the tool description is not required to repeat them. The description adds valuable conceptual background about tax treatment and exemptions but does not elaborate on specific parameter syntax or values beyond what the schema already provides.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description clearly states it calculates the full redundancy package—pay, notice, and untaken holiday—and splits tax according to HMRC rules, including the NI boundary and Northern Ireland variants. It distinguishes itself from sibling tools like uk_statutory_redundancy_pay and uk_notice_pay by covering the combined package rather than a single component.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

The description gives strong contextual guidance, explaining that the common belief about the £30,000 exemption is misleading and that notice and holiday are taxed as earnings. It implies when this tool is needed (when all three components must be calculated together) but does not explicitly name alternative tools or state when not to use it.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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TDQS

A3.9/5.0
Disambiguation4/5

Each tool targets a distinct niche (e.g., specific country tax rules, loan types, or legal calculations), with detailed descriptions that clarify boundaries. However, the large number of tools (66) could cause some confusion for an agent trying to select the right one for a general query, especially when multiple tools relate to the same country.

Naming Consistency4/5

Tool names follow a mostly predictable pattern: lowercase words separated by underscores, often starting with a country name (e.g., 'uk_stamp_duty_sdlt') or a topic (e.g., 'compound_growth'). There are minor deviations, such as abbreviations ('npv_irr', 'sip') and varying use of verbs, but overall the naming is clear and consistent.

Tool Count3/5

At 66 tools, the server is unusually large and covers an extensive range of financial and legal calculators. While each tool justifies its existence, the count exceeds the typical well-scoped range (3–15), making the server feel bloated. A more modular design might improve coherence.

Completeness4/5

The tool set covers a wide array of domains: personal income taxes, property taxes, loan calculations, investment returns, and specific country regulations. Minor gaps exist (e.g., missing tools for corporate taxes, general retirement planning, or insurance), but the overall coverage is thorough and addresses many niche scenarios that general AI handles poorly.

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