diff --git a/tessera-core/src/main/java/com/quorum/tessera/transaction/PayloadEncoderImpl.java b/tessera-core/src/main/java/com/quorum/tessera/transaction/PayloadEncoderImpl.java
index dacf203555..f468f496cf 100644
--- a/tessera-core/src/main/java/com/quorum/tessera/transaction/PayloadEncoderImpl.java
+++ b/tessera-core/src/main/java/com/quorum/tessera/transaction/PayloadEncoderImpl.java
@@ -127,6 +127,11 @@ public EncodedPayloadWithRecipients decodePayloadWithRecipients(final byte[] inp
                 new Nonce(recipientNonce)
         );
 
+        //this means there are no recipients in the payload (which we receive when we are a participant)
+        if (!buffer.hasRemaining()) {
+            return new EncodedPayloadWithRecipients(payload, emptyList());
+        }
+
         final long recipientLength = buffer.getLong();
 
         final List<byte[]> recipientKeys = new ArrayList<>();
diff --git a/tessera-core/src/test/java/com/quorum/tessera/transaction/PayloadEncoderTest.java b/tessera-core/src/test/java/com/quorum/tessera/transaction/PayloadEncoderTest.java
index 070fff2b33..d8ef4520ae 100644
--- a/tessera-core/src/test/java/com/quorum/tessera/transaction/PayloadEncoderTest.java
+++ b/tessera-core/src/test/java/com/quorum/tessera/transaction/PayloadEncoderTest.java
@@ -179,4 +179,29 @@ public void decodePayloadWithRecipients() {
         assertThat(result.getEncodedPayload().getRecipientBoxes()).isNotEqualTo(control.getEncodedPayload().getRecipientBoxes());
     }
 
+    @Test
+    public void decodeWithNoRecipientsGivesEmptyList() {
+
+        final byte[] input = new byte[]{0, 0, 0, 0, 0, 0, 0, 32, -51, 40, -97, 78, 121, 47, -26, -66, 10, -21, -80, -22, -33, 78, 30, 85, -61, 56, 22, -100, 70, 124, 114, -34, -41, 36, -62, 6, 109, 63, -17, 8, 0, 0, 0, 0, 0, 0, 0, 28, 120, 111, 63, -100, 97, -12, -103, 20, 2, -48, 37, -86, -115, -112, -75, -27, 55, 12, -1, 120, 13, 0, 86, 92, 52, 77, -4, 45, 0, 0, 0, 0, 0, 0, 0, 24, -115, -84, -58, 14, 82, 118, 4, -118, -53, 86, 3, 14, 112, 70, -4, 81, 121, 84, -24, -3, -73, -17, 6, 124, 0, 0, 0, 0, 0, 0, 0, 1, 0, 0, 0, 0, 0, 0, 0, 48, -87, -102, 0, 95, -13, 48, 76, -115, -115, 62, 54, -55, -78, 125, -54, -34, -71, -11, -95, -85, 78, -24, -30, 47, 65, 5, 88, 38, -111, -12, -41, -97, 103, -60, -101, 43, -57, -68, 68, -109, 36, 49, -63, -123, 62, 21, 67, -28, 0, 0, 0, 0, 0, 0, 0, 24, -63, 5, 86, 42, -85, -12, -36, 16, -108, 48, 26, 36, 44, -82, 15, -38, -19, 6, -101, 107, 110, -30, 95, 5};
+
+        final byte[] senderKey = new byte[]{-51, 40, -97, 78, 121, 47, -26, -66, 10, -21, -80, -22, -33, 78, 30, 85, -61, 56, 22, -100, 70, 124, 114, -34, -41, 36, -62, 6, 109, 63, -17, 8};
+        final byte[] ciphertext = new byte[]{120, 111, 63, -100, 97, -12, -103, 20, 2, -48, 37, -86, -115, -112, -75, -27, 55, 12, -1, 120, 13, 0, 86, 92, 52, 77, -4, 45};
+        final byte[] nonce = new byte[]{-115, -84, -58, 14, 82, 118, 4, -118, -53, 86, 3, 14, 112, 70, -4, 81, 121, 84, -24, -3, -73, -17, 6, 124};
+        final byte[] recipientnonce = new byte[]{-63, 5, 86, 42, -85, -12, -36, 16, -108, 48, 26, 36, 44, -82, 15, -38, -19, 6, -101, 107, 110, -30, 95, 5};
+        final byte[] recipient = new byte[]{-87, -102, 0, 95, -13, 48, 76, -115, -115, 62, 54, -55, -78, 125, -54, -34, -71, -11, -95, -85, 78, -24, -30, 47, 65, 5, 88, 38, -111, -12, -41, -97, 103, -60, -101, 43, -57, -68, 68, -109, 36, 49, -63, -123, 62, 21, 67, -28};
+
+        final EncodedPayloadWithRecipients encodedPayloadWithRecipients = payloadEncoder.decodePayloadWithRecipients(input);
+        final EncodedPayload encodedPayload = encodedPayloadWithRecipients.getEncodedPayload();
+
+        assertThat(encodedPayloadWithRecipients.getRecipientKeys()).isEmpty();
+
+        assertThat(encodedPayload.getSenderKey()).isEqualTo(PublicKey.from(senderKey));
+        assertThat(encodedPayload.getCipherText()).containsExactly(ciphertext);
+        assertThat(encodedPayload.getCipherTextNonce()).isEqualTo(new Nonce(nonce));
+        assertThat(encodedPayload.getRecipientNonce()).isEqualTo(new Nonce(recipientnonce));
+        assertThat(encodedPayload.getRecipientBoxes()).hasSize(1);
+        assertThat(encodedPayload.getRecipientBoxes().get(0)).containsExactly(recipient);
+
+    }
+
 }