Withdrawal and grandfathering of Extra-Statutory Concession BIM 66301: Sub-postmasters
Updated 6 December 2017
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This publication is available at https://www.gov.uk/government/publications/withdrawal-and-grandfathering-of-extra-statutory-concession-bim-66301-sub-postmasters/withdrawal-and-grandfathering-of-extra-statutory-concession-bim-66301-sub-postmasters
In November 2015 HM Revenue and Customs (HMRC) announced that the Extra-Statutory Concession on the remuneration of sub-postmasters set out at BIM 66301 would be withdrawn from 6 April 2017. As of 6 April 2017 no new customers can take advantage of the concessionary treatment. However, a number of respondents to the call for evidence asked for more time ahead of withdrawal.
HMRC has considered this and originally allowed a one year ‘grandfathering’ provision. Following further consideration, we will allow an additional year. This means that those currently using the concession can continue to do so until 5 April 2019.
The concession provides that where a retail trade is carried on from the same premises as the sub-post office and a sub-postmaster receives remuneration as an office holder from the Post Office, this income can be treated as a trade receipt. Following the withdrawal of the concession such sums will be taxed at source under the employment income rules.
Further information can be provided to sub-postmasters affected by this withdrawal. Such requests for advice should be sent to sean.rath@hmrc.gsi.gov.uk.