Withdrawal and grandfathering of ESC for sub-postmasters

24 April 2017


HMRC is allowing a ‘grandfathering’ provision until 5 April 2018 for the Extra-Statutory Concession (ESC) on the remuneration of sub-postmasters, which has been withdrawn from 6 April 2017.


In November 2015 HMRC announced that the ESC on the remuneration of sub-postmasters set out at BIM 66301 would be withdrawn from 6 April 2017. However, a number of respondents to the call for evidence asked for more time ahead of withdrawal.

HMRC has considered this and will allow a 1 year ‘grandfathering’ provision. This means that those currently using the concession can continue to do so for a further year, until 5 April 2018, however no new users can now take advantage of the concessionary treatment.

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.