TaxCalcUK
2026/27 TAX YEAR

Redundancy Pay and Tax Calculator

Estimate your statutory redundancy pay

Calculate statutory redundancy from your age, service and weekly pay cap, with optional package and 2026/27 tax estimates.

Your age at the date of redundancy.

Full continuous years with your current employer (partial years do not count).

Choose weekly or annual gross pay for statutory redundancy and tax banding.

Used for statutory redundancy (weekly cap £751) and estimated tax bands.

£

Common annual salaries:

Extra contractual or ex-gratia redundancy on top of statutory. Counts toward the £30,000 exemption.

£

Payment instead of working notice. Normally taxable as earnings, not covered by the £30,000 exemption.

£

Accrued holiday paid on leaving. Normally taxable as earnings.

£

Outstanding bonus or wages. Normally taxable as earnings.

£

Your estimated statutory redundancy pay

Estimated statutory redundancy pay
£6,008.00
Qualifying service8 years
Weekly pay used£751.00 (capped)
Enhanced / severance
£5,000.00
Tax-free termination
£11,008.00
Estimated package take-home
£14,104.00
Estimated Tax & NI
−£1,204.00

The £30,000 exemption applies only to qualifying termination payments (statutory + enhanced). PILON, holiday pay and bonus/unpaid wages are taxed as earnings.

Package breakdown

Payments

Statutory redundancy£6,008.00
Enhanced / severance£5,000.00
PILON / notice pay£3,500.00
Unused holiday pay£800.00
Bonus / unpaid wages£0.00
Gross package£15,308.00

Tax treatment

Tax-free termination£11,008.00
Taxable termination (over £30k)£0.00
Taxable employment payments£4,300.00
Income Tax on package£860.00
Employee NI on package£344.00
Estimated take-home£14,104.00

Statutory age bands

Years at 0.5× (under 22)0 yrs → 0 weeks
Years at 1× (age 22-40)8 yrs → 8 weeks
Years at 1.5× (age 41+)0 yrs → 0 weeks
Weekly pay used£751.00 (capped)
Equivalent weeks8 weeks

Key 2026/27 limits

£751.00

Weekly pay cap

Statutory week's pay

£30,000.00

Tax-free termination

Combined exemption

£22,530.00

Max statutory pay

20 years × 1.5 weeks

About the Redundancy Pay & Tax Calculator

Use this UK statutory redundancy pay calculator to estimate what your employer may owe based on your age, complete years of service and capped weekly pay. Optional package and tax estimates use 2026/27 rates.

Enter your age, years of service and weekly or annual salary, plus optional enhanced redundancy, PILON/notice pay, unused holiday pay and bonus/unpaid wages. The calculator shows tax-free termination pay, taxable employment payments, estimated Income Tax and NI, and take-home.

Statutory redundancy uses the £751 weekly cap and maximum 20 years of service. The first £30,000 of qualifying termination payments is usually tax-free. PILON, holiday pay and bonuses are taxed separately as earnings.

Official sources: GOV.UK statutory redundancy pay, tax on termination payments, and GOV.UK redundancy pay calculator.

Frequently Asked Questions