Postmaster's Tax - Pro Bono Help With Tax On Post Office Compensation Payments

 

 

Postmaster's Tax

 

Help with your tax on compensation payments

 

This website was launched to bring together qualified accountants and tax advisers to offer sub-postmasters support with their tax affairs arising from compensation payments free of charge.

The scheme is managed by Rebecca Benneyworth MBE BSc FCA, a chartered accountant with 37 years' experience of dealing with tax on behalf of her clients. Rebecca was awarded an MBE in 2012 for services to the tax profession. She was moved to offer help after reading about the tax issues sub-postmasters were encountering in a blog by Dan Neidle of Tax Policy Associates. 

Rebecca was brought up in a rural sub-post office in the 1950's and 60's and understands well how important sub-postmasters are to the community they serve.

Our thanks go to Nick Wallis and a number of sub-postmasters including Christopher Head who have helped to make people aware of this resource.

How we can help

Our scheme acts as a resource for sub-postmasters who have received compensation payments and are concerned about their tax position. You can contact us for help with tax returns or reassurance, or to act as a volunteer. Professionals acting for affected clients are welcome to contact us for our Factsheet on the technical issues.

 

Form can be accessed vis this link subpostmasterstax.org.uk/

 

Postmasters' tax - how your payments are taxed

GLO Compensation scheme(GLO)

Payments made under the  GLO (Group Litigation Order) compensation scheme comprise loss of earnings and interest. Because the earnings calculation was done based on your net pay (after tax) the loss of earnings element is not taxable. Any interest paid is exempt from tax by a specific exemption introduced by HMRC. 

Historic Shortfall Scheme (HSS)

Payments for loss of earnings made under the Historic Shortfall Scheme were calculated based on your pre tax earnings and are taxable if more than £30,000; PAYE was deducted from the payment. Post Office will make a top-up payment to bring the rate of tax down to the basic rate - the top up payments are exempt from tax. In addition you will have been paid interest, on which tax was deducted at 20%. Part of the top-up payment will also reduce the tax on the interest which may be liable to higher rates.

Your tax obligations

If you have received a taxable compensation payment between 6 April 2022 and 5 April 2023 you will need to complete a tax return by 31 January 2024 and pay the tax due; this only applies to recipients of HSS payments. HMRC has committed to cancelling any penalties and interest incurred as a result of not being able to file by the due date, or to pay the tax due to not receiving a top up payment. 

Help From HMRC

HMRC has set up a dedicated support team to help and advise on your tax obligations in relation to your compensation payment. There is information here telling you what you need to do and explaining how penalties and interest will be dealt with. A dedicated phone line will open on 10 January 2024 with a specialist HMRC team ready to help. The number is 0300 322 9625 and the line is open Monday to Friday from 8am until 6pm

Tax does have to be taxing.

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