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HMRC Redundancy Calculator and Redundancies That Will Make Your Company Pay

A HMRC redundancy calculator can guide employers on payments and benefits to employees that have been fired. HMRC or HM Revenue & Customs provides a guide for employers online. If you are unsure what your company owes to employees that have been fired in recent downsizing or recession related firings, speak with your Human Resources department. Your Human Resources department should be well versed in redundancy payments and tax information, according to the HMRC guidelines. Use a HMRC redundancy calculator to figure out exactly what you legally owe your past employee in order to make sure your company is not at risk of a law suit.

When an employee is fired or made redundant, the employee will normally receive a number of benefits. These benefits usually include pay and what is called a ‘redundancy package’. A redundancy package may include:

Redundancy Payment

Unpaid Salary must be paid


Payment for restricting where they work next

Non-cash benefits

Many of these components are taxable as earnings. There are several types of firings that take place at a workplace. The type of dismissal often changes what type of package the employee will receive when they are made redundant. A HMRC redundancy calculator will take into account the type of dismissal because of legality issues. The types of dismissal include; fair, unfair, constructive, and wrongful.

Fair and unfair dismissal is generally decided upon by a peer review. The dismissal as well as your conduct during the firing is what will determine whether it was a fair firing or not. Your conduct is under review throughout the entire process. It is important to work within your company’s established Human Resources guidelines when planning on firing an employee. This will save you any risk of acting out of line or putting your company at risk for an unfair dismissal. Many companies have a very clear set of rules and a procedure set up for redundancies in order to ensure that unfair dismissals never occur.

A constructive dismissal is one that happens after the employee contract has been breached. This can happen several ways, whether through harassment in the workplace, demoting an employee, changing the location of the workplace, or creating a dangerous environment. In a constructive dismissal, the employee actually resigns from their position because of these conditions. An employee can claim that their employer created a situation in which they had no other choice but to resign. They may also state that this is an unfair dismissal and they felt as if they were coerced into leaving their job. It is very hard for an employer to fight this type of dismissal because many times it is hard to defend a breach of contract. If you feel as if there is a breach in contract between your employee and your company, speak up to your Human Resources department and inform them that you may have a more serious situation on your hands. A HMRC redundancy calculator would inform you that this type of redundancy package would be expensive for the company as they have illegally breached a contract between them and the employee.

Wrongful dismissal is when an employee has their contract broken without giving them proper notice. Many companies offer warnings or review periods for employees. Employees may be placed on probation if the company feels as if their work is not meeting their standards. However, if an employee is made redundant without proper notice, your company is liable for wrongful dismissal. For this reason, it is always important to communicate exactly what your company expects from employees, as well as be frank with employees on their performance at their job.


  • How to Calculate HMRC Redundancy Payments
    If you have been made redundant and were fired by your employer, you may be entitled to certain HMRC redundancy payments. Your employer generally must pay you for at least two years.

 hmrc redundancy calculatorHow to Calculate HMRC Redundancy Payments