Are the calculators HMRC compliant?

Our calculations are built to align with HMRC guidance and use the latest April 2026 rates. However, they're for guidance only – always verify complex cases with HMRC or a qualified professional.

Yes. We're ICO registered (ZC013807) and calculations run in your browser – we don't store sensitive payroll data unless you explicitly save it to your account.

Do you integrate with payroll software?

Reckonly tools work as standalone calculators alongside your existing software like Sage, Xero, and QuickBooks. No integration required – use our tools as a pre-check layer.

What's the VAT registration threshold?

The UK VAT registration threshold is £95,000 taxable turnover in a rolling 12-month period. You must register within 30 days of exceeding this threshold.

How is statutory redundancy pay calculated?

Statutory redundancy pay is based on your age, weekly pay (capped at £700 for 2026/27), and length of continuous service (capped at 20 years). You get: 0.5 week's pay for each full year of service under age 22, 1 week's pay for each full year aged 22–40, and 1.5 weeks' pay for each full year aged 41 or over. The maximum statutory redundancy payment for 2026/27 is £21,000 (30 weeks × £700).

What is the weekly pay cap for 2026/27?

The statutory weekly pay cap rises to £700 from 6 April 2026 (up from £643 in 2025/26). If your actual weekly pay is above the cap, the cap applies for statutory redundancy purposes. Many employers offer enhanced redundancy terms above the statutory minimum — check your contract and company policy.

Is redundancy pay taxable?

The first £30,000 of redundancy pay (statutory and contractual combined) is tax-free. Any amount above £30,000 is taxed as employment income at your marginal rate. Statutory redundancy pay is always within the £30,000 threshold. National Insurance is not charged on the first £30,000. Payments in lieu of notice (PILON) are always taxable, whether contractual or not.

How much notice must an employer give?

The statutory minimum notice period is: 1 week for service between 1 month and 2 years, 1 week per year of service for 2–12 years, and 12 weeks for 12 or more years. Your contract may provide for longer notice. During the notice period you are entitled to reasonable time off to look for work or arrange training if you have at least 2 years' service.

Who qualifies for statutory redundancy pay?

You must be an employee (not a contractor or agency worker) with at least 2 years' continuous service with the same employer. You must have been dismissed by reason of redundancy — meaning the employer needs fewer employees to do work of a particular kind, or the workplace is closing. Directors can qualify if they have an employment contract.

What if my employer cannot afford to pay?

If your employer is insolvent, you can claim statutory redundancy pay from the government's National Insurance Fund through the Redundancy Payments Service. Claims must be made within 6 months of the employment ending. The government will pay statutory redundancy, up to 8 weeks' unpaid wages (capped at the statutory weekly limit), holiday pay, and notice pay.

Updated for 2026/27

Free Redundancy Pay Calculator 2026/27

Calculate statutory redundancy pay instantly using the 2026/27 weekly pay cap of £700. See your entitlement by age band, notice period, and tax-free amount — all in one calculation.

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Understanding UK Redundancy Pay

Statutory redundancy pay is a legal entitlement for employees with at least 2 years' continuous service who are dismissed because their employer needs fewer employees. The amount depends on three factors: your age, your weekly pay (subject to a statutory cap), and your length of continuous service (up to a maximum of 20 years).

The calculation works backwards from your leaving date. Each complete year of service earns you either half a week's pay (under 22), one week's pay (aged 22–40), or one and a half weeks' pay (aged 41+). Many employers offer enhanced redundancy terms above the statutory minimum — always check your contract and staff handbook.

£30,000 tax-free limit. The first £30,000 of any redundancy payment (statutory and enhanced combined) is free of Income Tax and National Insurance. Amounts above this are taxed at your marginal rate. Payments in lieu of notice are always fully taxable.

Redundancy Pay Rates for 2026/27

The statutory weekly pay cap and calculation rules for redundancy pay effective from 6 April 2026:

Weekly pay cap: £700 (up from £643 in 2025/26 — a 8.9% increase).
Maximum statutory redundancy: £21,000 (30 weeks × £700, for 20+ years service aged 41+).
Service cap: 20 years maximum, regardless of actual length of service.
Qualifying service: minimum 2 years continuous employment required.
Tax-free threshold: £30,000 — unchanged since 1988 and not indexed to inflation.

How Our Redundancy Calculator Works

Enter your dates, weekly pay, and date of birth. The calculator breaks down your entitlement by age band and shows your notice period, tax position, and comparison with enhanced terms.

Service Calculation

Enter start and end dates — we calculate complete years of service and apply the correct age-based multipliers.

Weekly Pay Cap

Automatically applies the £700 weekly pay cap for 2026/27. Shows both capped and uncapped calculations.

Age-Based Bands

Splits your service into under-22, 22–40, and over-41 bands, applying 0.5, 1, and 1.5 weeks respectively.

Tax Treatment

Shows the £30,000 tax-free threshold and calculates tax on any excess at your marginal rate.

Notice Period

Calculates your statutory minimum notice period based on length of service (1–12 weeks).

Enhanced Terms

Compare statutory entitlement against enhanced contractual terms to see the difference at a glance.

Redundancy Pay FAQs

Calculate Your Redundancy Entitlement

Free for your first calculation. Paid plans include bulk employee processing, enhanced vs statutory comparisons, PDF reports, and batch exports.

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