Dan Neidle’s Tax Policy Associates (TPA) says that the Post Office has incorrectly claimed up to £934m in tax deductions in relation to compensation payments made to former branch managers – and as a consequence, may have ‘underpaid its corporation tax by over £100m over the last five years, and may no longer be solvent’. TPA understands that HMRC are investigating. TPA also suggests that some of the Post Office’s related legal fees may not be deductible and that the Post Office has been receiving funding from government in a form which may be taxable.
A report of the story by the Financial Times (13 January) quotes Heather Self (Blick Rothenberg) who referred to the Upper Tribunal’s decision in Scottish Power (SCPL) Ltd and others v HMRC [2023] UKUT 218 (TCC) which found that compensation payments over mis-selling were non-deductible. ‘If I were in HMRC, I’d be arguing those payments are not deductible,’ Self said.
Dan Neidle’s Tax Policy Associates (TPA) says that the Post Office has incorrectly claimed up to £934m in tax deductions in relation to compensation payments made to former branch managers – and as a consequence, may have ‘underpaid its corporation tax by over £100m over the last five years, and may no longer be solvent’. TPA understands that HMRC are investigating. TPA also suggests that some of the Post Office’s related legal fees may not be deductible and that the Post Office has been receiving funding from government in a form which may be taxable.
A report of the story by the Financial Times (13 January) quotes Heather Self (Blick Rothenberg) who referred to the Upper Tribunal’s decision in Scottish Power (SCPL) Ltd and others v HMRC [2023] UKUT 218 (TCC) which found that compensation payments over mis-selling were non-deductible. ‘If I were in HMRC, I’d be arguing those payments are not deductible,’ Self said.
