In a shocking new development to the Post Office Horizon scandal, hundreds of wrongfully convicted postmasters are facing fresh financial hardship as HM Revenue & Customs demands tax on their compensation payments.
The controversial tax demands are hitting victims who have already endured years of financial ruin and personal trauma after being falsely accused of theft and fraud due to the faulty Fujitsu accounting system.
The Compensation Tax Trap
While compensation for lost earnings remains tax-free, payments covering lost savings and investments are being treated as 'interest' by HMRC, leaving many victims with unexpected bills running into thousands of pounds.
One affected postmaster revealed the cruel irony: "We've been through hell, got our convictions quashed, finally receive compensation, and now the taxman wants a chunk of it."
Political Pressure Mounts
Campaigners and MPs are demanding immediate government intervention to resolve what they're calling "another injustice piled upon the original miscarriage of justice."
Senior Conservative MP David Davis has condemned the situation, stating: "It is morally repugnant that victims of this scandal are being taxed on compensation for what they've lost."
The Scale of Injustice
The Post Office Horizon scandal represents Britain's largest ever miscarriage of justice, with over 900 sub-postmasters wrongly prosecuted between 1999 and 2015. Many faced imprisonment, bankruptcy, and family breakdowns.
Despite government promises of swift compensation, many victims continue to wait for full financial redress while navigating complex claims processes.
What Happens Next?
The Treasury faces growing pressure to create a specific tax exemption for all Post Office scandal compensation payments. Meanwhile, victims' groups are urging faster action as many elderly postmasters may not live to see full justice.
As public outrage grows, the question remains: how many more obstacles must these victims overcome before receiving the compensation they truly deserve?
