"It has emerged that Post Office Limited (POL) has been issued a £104,441,881 bill, relating to non-compliance under the off-payroll working rules and how the body engaged freelancers and contractors. This liability is to be subsidised by the DBT, a new document on the government website outlines, because the Post Office is "not in a position to fund it." Published on 29th January 2026, the information ( here) indicates that the Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the DBT concerning its proposed subsidy to the Post Office. This includes its handling of the Horizon IT system, along with IR35 compliance."
"In relation to IR35, DBT intends to provide funding of up to £104,441,881 to HMRC to cover POL's historic IR35 tax liability (and associated corporation tax) with the aim of protecting the post office network, as POL is not in a position to fund it."
"This is an astonishing amount - figures that you associate with football transfers, not necessarily IR35. It could easily be the biggest liability issued to any organisation as a result of mismanaging IR35 and the off-payroll rules. It raises an important question: how have so many public sector bodies got IR35 so wrong? The legislation itself is known for its com"
The Department for Business and Trade intends to fund up to £104,441,881 to HMRC to settle Post Office Limited's historic IR35 tax liability and associated corporation tax because Post Office cannot fund the liability. The Subsidy Advice Unit accepted a request to report on the proposed subsidy, including review of the Horizon IT system and IR35 compliance. Post Office accounts recorded a £72m provision in 2023/24 and a £101m provision in 2024/25, with an expectation of settlement in 2025/26. Other public sector bodies have disclosed non-compliance liabilities totaling well over £200m. A sector CEO described the sum as astonishing and questioned widespread IR35 misclassification.
Read at London Business News | Londonlovesbusiness.com
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