HMRC rules · £30,000 exemption · 2025/26 tax rates

Settlement Agreement Tax Calculator UK

Find out exactly how much of your settlement agreement is tax-free, how much tax you will pay, and your real net take-home figure.

Legal Requirement Before Signing

You are legally required to receive independent legal advice before signing a settlement agreement. This calculator provides an estimate only.

1. Your Income Tax Band

20% Basic Rate 40% Higher Rate 45% Additional Rate

Ex-gratia Compensation

Notice Pay (PILON)

Holiday Pay

Wages arrears Tax + NI

Notice pay (PILON) Tax + NI

Compensation (first £30k) Tax Free

Compensation (over £30k) Tax only

Legal fee contribution Tax Free

Personal allowance £12,570

Basic rate (20%) £12,571–£50,270

Tax-free compensation £30,000