Explanatory note

These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) to provide that a payment under the Group Litigation Order compensation scheme to a nominated individual, relevant onward payments of Post Office compensation payments, Process Review Scheme compensation payments and Suspension Remuneration Review compensation payments will be disregarded in the calculation of earnings for the purpose of establishing liability to Class 1 National Insurance contributions.

Group Litigation Order compensation payments can be made by the Department for Business and Trade to a nominated individual who was a shareholder, director or partner of a company or partnership that has ceased to exist and was a party to a claim against Post Office Limited in respect of the Horizon system that was subject to a group litigation order.

Relevant onward payments are payments made by a company who is a recipient of a specified compensation payment to an individual who is or was a director or employee of that company for the purpose of passing on all or part of that compensation payment to that individual.

Process Review Scheme compensation payments are made by Post Office Limited to postmasters who were financially impacted by previous processes or policies in relation to balance discrepancies unrelated to the Horizon system.

Suspension Remuneration Review compensation payments are made by Post Office Limited to postmasters contracted to deliver Post Office services through branches who were suspended before March 2019 and did not receive remuneration during their period of suspension.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.