Redundancy Pay and Tax Calculator 2026/27

Your package

Age at dismissal

Full years of service

Average weekly pay over the last 12 weeks

Taxable earnings already received this tax year

Enhanced redundancy or severance on top of statutory

Taxable notice pay or PILON/PENP amount

Holiday pay or unpaid wages taxed as pay

Optional note Enter the taxable notice/PENP amount separately if you know it. This keeps the tax-free severance calculation cleaner.

Estimated net package received

£0 Gross package entered: £0

Statutory redundancy pay£0

Tax-free redundancy element£0

Estimated employee Income Tax on taxable parts£0

Estimated employee NI on taxable wages£0

Weekly pay used for statutory calculation£0

Severance above the £30,000 tax-free slice£0

Taxed as wages£0

What this means

Statutory redundancy pay sits inside the general £30,000 tax-free termination-payment slice. Notice pay and holiday pay do not: they behave like normal taxable wages.

My scenarios

What this page is modelling

The redundancy part of a package and the wage-like part need separating. Statutory redundancy pay and most additional severance sit inside the first combined £30,000 tax-free slice. Notice pay, PILON, PENP, holiday pay and unpaid wages are usually taxed as normal earnings.

Statutory redundancy only starts once you have at least 2 full years of service.

Only the last 20 full years of service count, and the weekly pay used is capped.

This page estimates employee Income Tax and employee NI, not employer Class 1A or payroll timing differences.

Sources and assumptions

This calculator uses the rules for redundancies on or after 6 April 2026, including the £751 weekly cap. It does not try to replicate payroll-period quirks or every PENP edge case.