Post Office victims bankrupted by IT scandal will get extra payout after some had to use nearly all their compensation to pay off bankruptcy creditors and income tax bill

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https://www.dailymail.co.uk/news/articl ... ayout.html

Francis Duff said he was 'shafted' after losing his post office, house and marriage
He was offered £330,000 in compensation but had to hand back £322,000

Post Office victims bankrupted by the Horizon computer scandal will get extra compensation following a Daily Mail investigation, ministers said yesterday.

Francis Duff, 80, said he had been 'shafted twice' after losing his post office, house and marriage when mystery 'shortfalls' appeared in his branch's accounts.

He was offered £330,000 in compensation – but was forced to hand back £322,000 to pay off bankruptcy creditors and a tax bill.

Now the Business Department has promised to consider the situations of postmasters left bankrupt after the scandal and 'make offers accordingly'.

Neil Hudgell, a lawyer representing more than 150 postmasters, said: 'We are two and a half years on and only now addressing the fundamental issue that affects those that appear to have suffered the most financially.

'At the end of the day, the focus should be on putting these people back in the position they would have been had Horizon not occurred.

'As it stands, the framework in which compensation has been put forward does not get them to within a fraction of that position.

'The statement doesn't address the specifics of how that will be achieved without further significant delay.'

Politicians called for ministers to step in to solve the 'ludicrous' situation.

Karl Turner, a Labour MP and barrister who has represented postmasters, said: 'The Government needs to pull its finger out, pay up and ditch these punitive tax rates.'

Tory peer Lord Arbuthnot added: 'It's essential all postmasters are put back into the position they would have been in had this scandal not happened. This shouldn't be treated as a game, it's life-altering stuff for all too many people.'

Ministers have sparked an outcry by refusing to exempt postmasters from 'unjust' income tax bills on compensation payments, which will run into the tens of thousands of pounds for the worst affected.

Dan Neidle, the expert credited with exposing former Tory chairman Nadhim Zahawi's tax affairs, said: 'This is really disappointing. Post Office victims face a horrible tax result, and only the Government can fix it.'

Ray McCann, former HM Inspector of Taxes, added: 'Given the nature of this situation, and the unprecedented scandal, the Government should take action to exempt the payments from income tax.'