How this tool works
Estimate what is held
The planner applies the retention percentage to the entered work value and limits the estimate to the cap if one is entered. It then splits the estimate using your first-release percentage; the remainder is the final release. The initial 50/50 split is only an editable example.
For example, £10,000 subject to 5% retention gives an estimated £500 held. A 50% first release gives two £250 tranches. This does not establish that either tranche is due on a particular date.
Check upcoming policy changes
As at 7 October 2026, the Commercial Payments Bill is still progressing through Parliament. It proposes a ban on retention clauses and a two-year transition, but the retention measure would only take effect through commencement regulations after Royal Assent. The bill is not yet a current rule for your contract. Check its live status and regulations before acting on a change in law.
Assumptions and limitations
This is a browser-based estimate using the figures and periods you enter. It does not verify a contract, decide legal validity, calculate tax liability or replace current HMRC guidance. Reviewed 7 October 2026.
Frequently asked questions
Is the release date legally due?
No. Dates are planning entries. Check the contract milestone and payment mechanism.
Is 5% retention standard?
No universal percentage applies. Use the rate and cap in your contract.