Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what is their current target time for processing (1) online, and (2) postal, applications for certificates confirming payment of UK National Insurance when working temporarily abroad ("A1 Forms"), and when they expect to achieve these target times.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
HMRC’s Service Level Standards (SLA) for responding to A1 certificate applications are 15 working days, where received through the online application forms, and 40 working days, where received by post.
HMRC has implemented measures to bring processing back within the SLA by the end of April 2024.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer from Baroness Penn on 13 September (HL9883) stating that HMRC "introduced a new online version of the form CA3837 in June 2023", whether the final form will appear in digital format as well as, or as an alternative to, being sent out by post.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
We are moving the full A1 application process to an online service. This will improve the speed at which customers have applications processed. This digital approach will be phased in over a number of months and the print and post version that is on GOV.UK will be removed. This will hugely improve the user experience when completing the form and sending necessary supporting documents. We cannot be specific on the timescales for this change but please continue to review GOV.UK where we will publish updated information on the services we offer, for customers going to work overseas.
We do not have any plans to allow customers to apply to work overseas via the A1/S1 application process by telephone. This is due to the level of detailed information that is needed when submitting the form.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government whether there are plans to ensure that all queries about A1 (CA3837) forms can be dealt with online, by telephone, or both, rather than by post.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
We are moving the full A1 application process to an online service. This will improve the speed at which customers have applications processed. This digital approach will be phased in over a number of months and the print and post version that is on GOV.UK will be removed. This will hugely improve the user experience when completing the form and sending necessary supporting documents. We cannot be specific on the timescales for this change but please continue to review GOV.UK where we will publish updated information on the services we offer, for customers going to work overseas.
We do not have any plans to allow customers to apply to work overseas via the A1/S1 application process by telephone. This is due to the level of detailed information that is needed when submitting the form.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what is the average time between the (1) application for, and (2) issuing of, an A1 (CA3837) document for UK self-employed workers; and whether they have any plans to reduce the processing time for such applications.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The average time it is taking HMRC to process/issue A1s received online is 15 weeks as it stands today. HMRC processes 3 different applications forms (CA3822, CA3837 and CA8421) that can result in A1s being issued.
It is not possible to break it down to average processing times for each application due to the complexities of HMRC’s internal digital mail systems.
In quarter 3, HMRC plans to upskill additional colleagues to help process the backlog of CA3822s and this will include CA3837s and CA8421s which will help to reduce processing times.
HMRC intend to automate the CA3837 application process in the Autumn which will improve processing times and remove opportunities for error.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government whether they have any plans to fully digitise the processing of A1 (CA3837) documents for UK self-employed workers in the music industry temporarily working in Europe, including the issuing of such documents.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
In response to customer feedback, HMRC introduced a new online version of the form CA3837 in June 2023, which was designed to streamline the application process, offering a number of enhancements and providing additional guidance for more complex questions.
HMRC intend to automate the CA3837 application process in the Autumn which will improve processing times and remove opportunities for error.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government whether they have any plans to replace all single-use A1 (CA3837) documents for UK self-employed workers in the music industry with an A1 document valid for two years covering multiple unspecified (1) tours, (2) countries, and (3) dates.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
HMRC issues A1 certificates where a self-employed individual is subject to UK social security legislation whilst working in the EU. The rules for issuing certificates apply equally to HMRC and EU Member State social security authorities. The government has no plans to seek changes at this time.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government, further to the answer by Lord Kamall on 20 October (HL Deb col 1168), whether there are ongoing discussions with the arts sector regarding a reduction in VAT on tickets; and what assessment they have made of the effect of such a measure on the sector.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited by both legal and fiscal considerations.
VAT is the UK’s third largest tax forecast to raise £154 billion in 2022/23, helping to fund key spending priorities such as important public services, including the NHS and policing.
In addition, a request for a VAT cut should be viewed in the context of over £50 billion of requests for relief from VAT received since the EU referendum.
Currently, there are no plans to reduce the main rate of VAT on tickets for the art sector. However, the Government keeps all taxes under review as part of the tax policy making cycle and Budget process.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government whether they have considered the introduction of an online sales tax for the purpose of levelling the playing field between high street and online retailers, with particular regard to the sale of books.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
At Autumn Budget 2021, the Government announced that it will continue to explore the arguments for and against an Online Sales Tax (OST), the revenue from which would be used to provide business rates relief for in-store retail. The consultation will launch shortly.
No decisions on whether to proceed with an OST have yet been made. It is the Government’s intention to use the forthcoming consultation to consider in detail the issues surrounding proposals for an OST. This will include exploring the range of products, both physical and digital, which are sold online, including books.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to provide 100 per cent business rate relief to the end of 2022/23 for all music venues, given the COVID-19 Plan B restrictions.
Answered by Lord Agnew of Oulton
Our support for the music industry through the £2 billion Culture Recovery Fund throughout the pandemic has been unwavering.
The Government has provided unprecedented business rates support, worth £16 billion, for the retail, hospitality, and leisure sectors since the start of the pandemic. Eligible retail, hospitality, and leisure properties paid no business rates for 15 months from 1 April 2020, and thanks to the current 66 per cent capped relief which took effect on 1 July 2021, over 90 per cent of eligible businesses will see a 75 per cent reduction in their business rates bill across this entire financial year to April 2022.
In recognition of longer-term challenges facing the high street, eligible retail, hospitality, and leisure businesses will receive a new temporary relief worth almost £1.7 billion in the year 2022-23.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government whether they will (1) cancel, or (2) delay, the planned VAT rise on culture tickets, given the COVID-19 Plan B restrictions.
Answered by Lord Agnew of Oulton
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Spring Budget 2021, the Government extended the 5 per cent temporary reduced rate of VAT for the tourism and hospitality sectors until the end of September. On 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.
All taxes are kept under review, but there are no plans to extend the 12.5 per cent reduced rate of VAT. This relief has cost over £8 billion. Applying a reduced rate of VAT for a longer period would impose additional pressure on the public finances, to which VAT makes a significant contribution.