Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government plans to provide (a) additional support (b) exemptions and (c) simplified alternatives for small businesses and landlords to comply with Making Tax Digital requirements without the need for specialist accounting expertise.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Making Tax Digital (MTD) for Income Tax will be introduced from April 2026 for sole traders and landlords with qualifying income over £50,000. It will be extended to those with income over £30,000 from April 2027 and for those with income over £20,000 in April 2028. In total around 2.9m businesses and landlords will need to use MTD for Income Tax. Sole Traders and landlords below these thresholds will still be able to file their Self Assessment returns as they do now.
HMRC has undertaken detailed assessments of the potential impact of MTD for Income Tax across different taxpayer groups, including self-employed individuals, small businesses, and landlords. The latest published assessment is available at:
MTD for Income Tax is a new approach that is designed to help customers avoid errors and make their annual tax returns easier. The government has taken steps to minimise costs to businesses resulting from MTD, including working with the software industry to ensure free software is available for landlords and other businesses with simple affairs.
HMRC is providing a range of support to taxpayers transitioning to MTD, including guidance in various formats, accessible video content and webinars. HMRC is testing the MTD service with thousands of users, and using dedicated teams to ensure the right support is available.
Those who genuinely cannot operate MTD because it is not reasonable for them to do so will be able to apply for an exemption from MTD requirements.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if the Government will make an assessment of the potential merits of retaining the option for small low-income businesses and landlords to continue submitting an annual Self Assessment Tax Return on paper instead of requiring full Making Tax Digital submissions.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Making Tax Digital (MTD) for Income Tax will be introduced from April 2026 for sole traders and landlords with qualifying income over £50,000. It will be extended to those with income over £30,000 from April 2027 and for those with income over £20,000 in April 2028. In total around 2.9m businesses and landlords will need to use MTD for Income Tax. Sole Traders and landlords below these thresholds will still be able to file their Self Assessment returns as they do now.
HMRC has undertaken detailed assessments of the potential impact of MTD for Income Tax across different taxpayer groups, including self-employed individuals, small businesses, and landlords. The latest published assessment is available at:
MTD for Income Tax is a new approach that is designed to help customers avoid errors and make their annual tax returns easier. The government has taken steps to minimise costs to businesses resulting from MTD, including working with the software industry to ensure free software is available for landlords and other businesses with simple affairs.
HMRC is providing a range of support to taxpayers transitioning to MTD, including guidance in various formats, accessible video content and webinars. HMRC is testing the MTD service with thousands of users, and using dedicated teams to ensure the right support is available.
Those who genuinely cannot operate MTD because it is not reasonable for them to do so will be able to apply for an exemption from MTD requirements.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment the Government has made of the (a) costs, (b) administrative burdens, (c) the risk of being forced to close and (d) other impacts as a result of Making Tax Digital for Income Tax on sole traders and landlords with low turnover.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Making Tax Digital (MTD) for Income Tax will be introduced from April 2026 for sole traders and landlords with qualifying income over £50,000. It will be extended to those with income over £30,000 from April 2027 and for those with income over £20,000 in April 2028. In total around 2.9m businesses and landlords will need to use MTD for Income Tax. Sole Traders and landlords below these thresholds will still be able to file their Self Assessment returns as they do now.
HMRC has undertaken detailed assessments of the potential impact of MTD for Income Tax across different taxpayer groups, including self-employed individuals, small businesses, and landlords. The latest published assessment is available at:
MTD for Income Tax is a new approach that is designed to help customers avoid errors and make their annual tax returns easier. The government has taken steps to minimise costs to businesses resulting from MTD, including working with the software industry to ensure free software is available for landlords and other businesses with simple affairs.
HMRC is providing a range of support to taxpayers transitioning to MTD, including guidance in various formats, accessible video content and webinars. HMRC is testing the MTD service with thousands of users, and using dedicated teams to ensure the right support is available.
Those who genuinely cannot operate MTD because it is not reasonable for them to do so will be able to apply for an exemption from MTD requirements.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of data-sharing protocols between Departments following the suspension of child benefit payments by HMRC.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC uses Home Office international travel data as a starting point for identifying potential unreported absences from the UK. Undetected changes to an individual’s residency status are a leading cause of Child Benefit error and fraud.
The legal basis for disclosing information between HMRC and Home Office for the purpose of tackling fraud is Chapter 4 of the Digital Economy Act (“DEA”) 2017. The exchange of data between HMRC and the Home Office continues to work as expected and agreed.
Asked by: Alex Easton (Independent - North Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of changes to (a) Agricultural Property Relief and (b) Business Property Relief on the (i) financial viability of family-run farms, (ii) long-term sustainability of British agriculture and (iii) mental wellbeing of people working within the sector; and if she will review that policy before the Autumn Budget 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
The Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The Government published a tax information and impact note on 21 July 2025 and this is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms.
More generally, I also refer the Honourable Member to the responses to UIN 66576, UIN 83976, and UIN 86576, which all demonstrate the mental health support provided to farmers by the Government.
The Government will also invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC plans to publish the findings of its review into suspended child benefit payments.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years.
In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry. We have apologised for this.
Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims.
HMRC reviewed all compliance cases already opened and conducted a PAYE check. These checks were completed for all customers on 14 November. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated.
By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact.
HMRC will also be responding to the Treasury Select Committee to outline the steps it has taken in relation to this issue.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she expects HMRC to complete its review of suspended child benefit claims.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years.
In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry. We have apologised for this.
Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims.
HMRC reviewed all compliance cases already opened and conducted a PAYE check. These checks were completed for all customers on 14 November. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated.
By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact.
HMRC will also be responding to the Treasury Select Committee to outline the steps it has taken in relation to this issue.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what she is taking to ensure that UK residents are not mistakenly recorded as having left the UK and subsequently have their child benefit stopped by HMRC.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years.
In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry. We have apologised for this.
Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims.
HMRC reviewed all compliance cases already opened and conducted a PAYE check. These checks were completed for all customers on 14 November. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated.
By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans maintain the five pence per litre fuel duty cut.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut and cancelling the planned increase in line with inflation for 2025/26. The temporary 5p cut is currently scheduled to expire in March 2026. The Government considers the impact of fuel duty on households and businesses, with decisions on rates made at fiscal events.
Asked by: Lee Dillon (Liberal Democrat - Newbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to review inheritance tax reliefs for agricultural property.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.