.png)
.png)
The taxpayer operated a newsagent tobacconist and confectioners shop with a sub-post office attached.
In November 2008 Post Office Ltd decided to close the sub-branch and made the taxpayer a compensation payment of £75 589.
She included the payment less the first £30 000 in the profit-and-loss account of the business for the year to 8 August 2009 and in her tax return for the year 2009/10.
In August 2010 HMRC opened an enquiry into the taxpayer’s 2008/09 return on the basis the compensation payment should have been taxed in that year.
The department decided the money was compensation for loss of office and should not have been included with the income of her trade.
The Post Office had sent details of all compensation payments made to sub-postmasters and sub-postmistresses to HMRC...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
