Final Pay & Tax Estimator
Estimate your final lump sum and check for potential over-taxation
Common Questions
How is holiday pay calculated when leaving?
Your employer should calculate your daily rate (usually monthly salary ÷ 21.67 or annual salary ÷ 260) and multiply it by the number of accrued days you haven't used. This payment is taxable.
Will I get a tax refund?
If you don't start a new job immediately, or if your final payslip pushed you into a higher tax bracket temporarily, you are likely due a refund. HMRC usually processes this automatically after the end of the tax year, or you can claim it earlier using form P50 if you'll be unemployed for 4+ weeks.
What is a P45?
A P45 is a document your employer gives you when you stop working for them. it shows how much tax you've paid on your salary so far in the tax year (6 April to 5 April). You'll need to give this to your next employer.
Enter your final month details to see a breakdown of your expected pay and tax.
Final Pay Checklist
- Check untaken holiday accrual
- Confirm last day of service
- Verify notice period pay
- Ensure you receive your P45
- Check for "messy" deductions
Understanding Your Final UK Payslip and P45 Tax
When you leave a job in the UK, your final payslip is often significantly higher than your regular monthly salary. This is because it usually includes "wash-up" payments for things like untaken annual leave, pro-rata salary for the days you worked in your final month, and potentially a payment in lieu of notice (PILON).
While a larger-than-usual payment is welcome, it can cause complications with the HMRC PAYE system. Payroll software often calculates tax based on the assumption that you will receive that same high amount every month for the rest of the year. This can result in you being temporarily over-taxed or pushed into a higher tax bracket (e.g., from 20% to 40%) for that final month.
How to Claim a Tax Refund After Leaving a Job
If you have been over-taxed on your final pay, don't worry—the money isn't lost. If you start a new job soon, your new employer will use your P45 to adjust your tax code, and you'll likely see a "refund" (lower tax) in your first or second payslip at the new company. If you aren't planning to work for a while, you can claim a refund directly from HMRC using form P50 after four weeks of unemployment.
Our final pay estimator helps you anticipate these figures so you can check your actual payslip for accuracy. It is surprisingly common for employers to miscalculate holiday accrual or forget to include pro-rata salary for the final few days worked.