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HMRC internal manual

Employment Income Manual

Tax treatment of Post Office employees: sub-postmasters: payments on termination of office

EIM68220 listed the main terminal payments made to sub-postmasters.

  • Surplus payments: these payments are earnings within Section 62 ITEPA 2003 and should be treated as follows:
    • as earnings for the final year where the remuneration is assessed as employment income, or
    • as trading receipts of the final period of account where the remuneration is included with the trading receipts assessed as Trading Income.

As regards the treatment of cash deficiencies, see EIM68210.

For the treatment of closure payments see EIM68228.