The remuneration of a sub-postmaster is chargeable as employment income and as such, earnings from the office of sub-postmaster are subject to Class 1 deductions.

HMRC believes that sub-postmasters are within the charge to tax on employment income on their ‘salary’. However, prior to 6 April 2017, where a retail trade was carried on from the same premises as the sub-post office, by concession the sub-postmaster’s ‘salary’ could be treated as a trade receipt of the retail trade (with no deduction for either primary or secondary Class 1 contributions). This was done by issuing a ‘no tax’ (or ‘NT’) code for the salary.

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