Two directions, both visible. Set the common inputs at the top, then:
Lump sum → months net: type a settlement figure to see how many months of the claimant's regular net salary it delivers.
Months net → lump sum: type a target number of months to see what gross settlement is required to deliver that net.
"Net salary" means net of income tax and employee National Insurance. Pension contributions are excluded (too variable across claimants).
The settlement-is-in-connection-with-termination toggle controls whether the s.401 ITEPA 2003 £30,000 allowance applies. Yes → first £30,000 tax-free, remainder taxed at marginal income tax (no employee NI). No → whole settlement taxed as earnings (full IT + employee NI). The calculator does not split PILON / ex gratia components — it treats the lump sum as one indivisible figure.
Employment Settlement Helper
Translates between a lump-sum settlement and an equivalent number of months of net salary, in both directions, accounting for the s.401 ITEPA 2003 £30k tax-free allowance and the claimant's marginal income tax rate(s).
Common inputs
Bands frozen across all three years under current fiscal-drag policy.
Used to compute salary received in this tax year up to termination.
Excluding the settlement and excluding salary from the Respondent. Typically: new-job earnings post-termination, freelance income, etc.
Reference — claimant's normal net monthly salary
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Lump sum → months net
Equivalent net months
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Months net → lump sum
Required gross settlement
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Show working
Disclaimer. Simplified single-bucket model: treats the settlement as one indivisible figure. Does not model PILON / ex gratia breakdown, prohibited-discrimination injury-to-feelings carve-outs, personal-injury damages, breach-of-contract damages unrelated to employment, or pension contributions. "Net salary" = net of income tax + employee National Insurance only. Tax bands assume rest-of-UK rates (Scotland not modelled). Use as a conference-room conversion tool; not a substitute for accountant advice on the structuring of a settlement agreement.