The Horizon Shortfall Scheme
Welcome to the website of the Horizon Shortfall Scheme
The Horizon Shortfall Scheme (HSS) aims to resolve past issues for current and former postmasters who believe they have experienced shortfalls related to previous versions of Horizon. It was previously called the Historical Shortfall Scheme.
Here you can find all the information you need to find out whether you are eligible and to help you submit an application.
Please click on the relevant links on the right to read and download the documents to help you consider and complete an application. Please read all the information before completing an application.
You can apply either for a £75,000 Fixed Sum Award or to have your application fully assessed by the Scheme. Eligible full assessment applications include referral to an Independent Advisory Panel.
Once you’ve downloaded a copy of the application form, you can then complete it and email it in, or send it by post if you prefer.
We are writing to postmasters who have not yet applied to the Scheme and this includes a paper copy of the application form. If you have not yet received this mailing and you’d like a paper copy in the meantime, please contact horizonshortfallscheme@postoffice.co.uk to request one.
Some of the documents contain formal, legal information and language that is necessary for the integrity of the Scheme. Where possible, such as in the questions and answers, we have kept the information as clear and straightforward as possible.
Information on this website
The links on the right take you to information and documents to help you consider and complete an application:
- Eligibility criteria
- Terms of reference for the Scheme
- Application form
- Questions and Answers about the Horizon Shortfall Scheme
- Frequently Asked Questions about the £75,000 Fixed Sum Award
- Consequential Loss principles and guidance
- Terms of reference for the Independent Advisory Panel
- Privacy notice
Below and by scrolling down, you can read information and updates about the Scheme that have been added to this page over time and the dates they were added. Some of these may be more relevant to people who are already in the Scheme.
Older information and updates that were previously on this page can be found by clicking on HSS Archive at the bottom of the right-hand list of links.
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Horizon Shortfall Scheme Applications – £75,000 Top-Up Offer
The Government announced on 13 March 2024 that it is extending the £75,000 Fixed Sum Award - originally for Group Litigation Order (GLO) claimants - to all eligible claimants in the Horizon Shortfall Scheme (HSS).
We have begun writing to eligible claimants who have already accepted an HSS Offer and received a full and final settlement of less than £75,000 with details of their Top-Up Offer. We aim to make all Top-Up Offers by mid-September 2024.
Top-Up Offer – Frequently Asked Questions
- Why am I being offered this Top-Up now when my HSS claim is already settled?
On 13 March 2024, the Minister of State for the Department for Business and Trade announced that the Government would be offering the same payment which has been made available to Group Litigation Order claimants to all eligible claimants in the Horizon Shortfall Scheme (“the Scheme”). We are facilitating these payments on behalf of the Government and are topping up all settled claims in the Scheme to £75,000. You signed a full and final settlement with Post Office Limited in respect of the Scheme for less than this amount, so are due to receive a balancing payment.
- Will I pay tax on this sum or have to declare it on my tax return?
No. The Government has announced that it will introduce legislation to exempt these payments from income tax, capital gains tax, national insurance contributions, corporation tax and inheritance tax.
- How quickly will I receive my Top-Up Offer payment if I accept?
Once Post Office has received your signed Top-Up Offer Acceptance Form and we confirm your bank details, Post Office aims to make payment within 10 working days.
- Is there funding available to seek legal advice on whether to accept this offer?
You may take legal advice to help you decide, but please note that this would be at your own expense and Post Office is unable to offer any financial support to pay for such advice.
If you don’t have a solicitor, you can find a local one via the Law Society –
England and Wales: www.lawsociety.org.uk
Scotland: www.lawscot.org.uk/find-a-solicitor
Northern Ireland: www.lawsoc-ni.org/solicitors
Or you can contact Citizens Advice who can tell you about other organisations that could help.
Updated: 11 September 2024
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Independent appeals process
On 9 September 2024, the Government announced a new independent appeals process for the Horizon Shortfall Scheme. Their news release can be found here: New independent appeals system for postmasters impacted by Horizon scandal - GOV.UK (www.gov.uk)
This welcome announcement further supports our shared commitment to ensuring full and fair redress. It will mean postmasters who feel their financial settlement did not reflect the true extent of their losses and trauma will be able to apply for the new independent process, which will be overseen by the Department for Business and Trade (DBT).
We will keep this website updated with further information and details from DBT when these are available.
Updated: 10 September 2024
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Interim payments
To assist Postmasters, once we have undertaken an initial review of an eligible application and identified any likely shortfalls, Post Office will consider making an interim payment to eligible applicants in advance of Post Office sending a final outcome letter (please contact Post Office at horizonshortfallscheme@postoffice.co.uk to request this). Eligible applicants who have received an Offer but wish to dispute it, will also be offered an interim payment of 100% of the Offer (please contact Post Office at DisputeResolutionTeam@postoffice.co.uk to request this if we have not been in touch with you already). Post Office will not ask for such payments back, whatever the ultimate outcome of eligible applicant claims.
The Horizon Shortfall Scheme has been designed to be simple and user-friendly to avoid the need to incur costs of legal representation. Applicants are of course welcome to engage a lawyer or other professional advisor to provide independent representation at their own expense. Post Office will however help you with the reasonable costs of obtaining legal advice on an Offer if one is made to you. If so, full details will be included in the Offer letter. Reasonable legal fees will also be reimbursed should you wish to dispute the Offer.
Published 20 July 2023 - Updated 4 September 2024
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Tax Top-Up payments - update
Following a Government announcement on 19 June 2023, Postmasters who have settled their claims in the Horizon Shortfall Scheme (HSS) are receiving individual Tax Top-Up payments to ensure the amount of redress they have been paid is not unduly reduced by tax.
Individual Tax Top-Up letters continue to be distributed and payments are made as soon as possible following receiving Postmaster consent. Substantial progress has been made towards completing all Tax Top-Up payments and we are sending the remaining Tax Top-Up letters and payments as quickly as we can.
A full Q&A is provided with the Postmasters Tax Top-Up letter and detailed below are some of the key questions and answers:
Q Do I pay tax on the Tax Top-Up payment?
A No, the Tax Top-Up payment is exempt of income tax, capital gains tax and national insurance contributions and your estate will not be required to pay inheritance tax on it either.
Q Do I pay tax on the HSS compensation payment?
A Yes, there may be tax to pay on your HSS compensation payment. However, this has been effectively limited to the Basic (Starter in Scotland) rate of tax through the Tax Top-Up payment you will receive.
Q Can I get help with filing my tax return?
A Yes, remember, it’s your responsibility to ensure that the correct amount of tax is paid (and paying too little tax could result in you having to pay interest and penalties to HMRC). Post Office will pay your fees of up to £1200 including VAT for help in deciding whether you need to file a tax return and in completing it for the year(s) you received your HSS compensation payment. We strongly recommend that you seek help with filing your tax return.
Q Can I claim a tax refund through my self-assessment?
A You may be due a tax refund if the tax withheld on your HSS compensation payment was more than the tax due when filing your self-assessment return. To correctly reflect your personal tax status you may need to complete a tax return. The HMRC self-assessment process will work in the normal way (see https://www.gov.uk/self-assessment-tax-returns). The Tax Top-Up payment is designed based on generous assumptions, you can still accept the Tax Top-Up payment even if you are owed a tax refund after self-assessment.
Q Can I receive a Tax Top-Up payment if my claim is not yet fully settled?
A No. Tax Top-Up payments are provided to ensure that the total amount of redress received is not unduly reduced by tax. Therefore, Tax Top-Up payments are calculated and offered on the basis of the final settlement amount that has been agreed and paid.
Q Who can I speak to if I have general queries regarding this payment?
A You can contact us by email at horizonshortfallscheme@postoffice.co.uk
Published: 12 April 2024
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For updates pre-April 2024, please view our archive page.