UK Redundancy Package Calculator — what you actually take home
uk_redundancy_packageRedundancy 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
| Name | Required | Description | Default |
|---|---|---|---|
| age | No | Your age when the job ends | |
| nation | No | Where do you work? Northern Ireland sets its own, higher statutory limits: £783 a week and £23,490 maximum. | gb |
| niRate | No | Your National Insurance rate NI is due on notice and holiday pay, never on the termination payment — a different boundary from income tax. | 8 |
| taxRate | No | Your 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 |
| exGratia | No | Employer top-up above the statutory minimum (£) An enhanced or ex-gratia payment. Shares the £30,000 exemption with your statutory redundancy pay. | |
| weeklyPay | No | Gross weekly pay (£) | |
| holidayDays | No | Untaken holiday days owed | |
| serviceYears | No | Complete 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. | |
| noticeTreatment | No | How 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 |