Government unveils additional tax payments for postmasters impacted by the Horizon IT Scandal.

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                Postmasters will receive additional payments through the Historic Shortfall Scheme (HSS).
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            <span class="gem-c-notice__title govuk-notification-banner__heading">This was published under the <span lang="en" dir="ltr">2022 to 2024 Sunak Conservative government</span></span>
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                                <li>Postmasters participating in the Historic Shortfall Scheme (HSS) will receive additional funds to ensure their compensation isn't unfairly diminished by taxes.</li>
                                <li>HSS claimants can also claim up to £300 for independent assistance with their tax returns.</li>
                                <li>The government has implemented these additional payments to guarantee that postmasters receive complete and just compensation.</li>
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                            <p>Every postmaster involved in the Historic Shortfall Scheme will be awarded a top-up payment alongside their compensation package once the Post Office has finalized all individual payments.</p>

                            <p>The tax implications of awards in the Historical Shortfall Scheme have, in certain instances, led to an unjust decrease in the compensation received by postmasters, an issue that these top-up payments will rectify.</p>

                            <p>Additionally, claimants will have access to £300 for further support with independent tax advice, aiding them in filing their tax returns.</p>

                            <p>The government is resolute in ensuring that postmasters affected by the Horizon IT Scandal get the compensation they rightfully deserve, and today’s announcement signifies a crucial step toward ensuring compensation fairness and consistency.</p>

                            <p><strong>Postal Affairs Minister Kevin Hollinrake stated:</strong></p>

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                                <p>We are dedicated to ensuring that postmasters and their families receive the full and fair compensation they deserve for the distress and hardship caused by the Horizon scandal.</p>

                                <p class="last-child">With these top-ups, we’re ensuring that every penny remains where it rightfully belongs—in postmasters’ pockets.</p>
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                            <p>HSS offers were structured on a gross basis, making the compensation taxable. This approach allowed claims to be processed more smoothly without needing postmasters to submit tax details.</p>

                            <p>However, this method did not consider the tax on lump sum compensation, meaning postmasters may not be restored to the financial situation they would have ordinarily enjoyed. Top-up payments represent the fastest and most efficient means to resolve this matter and will be tax-exempt.</p>

                            <p>In total, an additional £26 million is anticipated to be disbursed to claimants through these tax-exempt top-ups.</p>

                            <p><strong>Background</strong></p>
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                    <p>Published 19 June 2023</p>
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