"A newly published government document confirms that the Department for Business and Trade will provide up to £104,441,881 to cover the Post Office's outstanding tax liability to HM Revenue & Customs. The funding will be paid directly to HMRC after officials concluded that the Post Office is "not in a position to fund it" itself. The disclosure, published on 29 January 2026, appears in a notice from the Subsidy Advice Unit,"
"The scale of the liability has grown significantly over time. In its 2023/24 annual report, the Post Office made a £72 million provision following an HMRC review into how it had classified contractors and freelancers. That provision increased to £101 million in its 2024/25 accounts, with the organisation stating it expected the matter to be settled during the 2025/26 financial year."
The Department for Business and Trade will provide up to £104,441,881 to cover the Post Office's outstanding tax liability to HM Revenue & Customs. Funding will be paid directly to HMRC after officials concluded the Post Office cannot fund the liability itself. The support relates to historic handling of contractors under the off-payroll working regime and other legacy issues linked to the Horizon IT system. The Post Office made a £72 million provision in 2023/24, which rose to £101 million in 2024/25, with an expectation of settlement in 2025/26. Several major public sector bodies have disclosed IR35-related liabilities exceeding £200 million combined. Seb Maley of Qdos described the bill as extraordinary and compared the figures to football transfers, suggesting it could be the largest IR35 liability ever issued to a single organisation.
Read at Business Matters
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