Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what advice they are giving regarding carnets to those working in the fashion industry and who travel to Europe for work purposes, particularly in regard to clothing items; and what plans they have to make such advice more detailed.
Answered by Lord Agnew of Oulton
Now that the UK has left the EU Customs Union and Single Market, there are new customs processes that businesses and individuals need to follow when moving goods from Great Britain into the EU and vice versa. These new processes apply to all goods being moved on a temporary basis. HMRC are supporting traders to adjust to changes in their customs obligations with extensive engagement, communications campaigns, guidance, and educational resources, working in collaboration with other Government departments.
ATA Carnets are one option businesses and individuals can use to move goods temporarily between the UK and EU. An ATA Carnet simplifies customs formalities by allowing a single document to be used for clearing goods through customs in the countries that are part of the ATA Carnet system. This removes the requirement for individual declarations of goods and allows goods to be imported or exported without payment of duty.
Examples of goods that can be covered by ATA Carnets include commercial samples, clothing, and jewellery as well as professional equipment such as photography equipment, stage equipment and lighting. In the UK, ATA Carnets are administered by the London Chamber of Commerce and Industry. There is an issuing cost, and Carnet holders are required to provide a security which relates to the value of the goods being temporarily exported. More information can be found on their website.
As an alternative to an ATA Carnet, businesses and individuals may be able to use the EU’s Temporary Admission procedure, when moving goods temporarily into the EU. This allows goods to enter the EU on a temporary basis without payment of duties subject to relevant conditions being met. The management of EU import and export procedures is the responsibility of the customs authorities of the Member States, so it is important that businesses and individuals confirm any conditions or procedures that may apply, such as the time limit that goods may remain in the EU without the payment of duty. Further information can be found on the EU’s website.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to help (1) reduce, or (2) remove, the costs of carnets for those working in the fashion industry who travel to Europe for work purposes.
Answered by Lord Agnew of Oulton
In the UK, ATA Carnets are administered by the London Chamber of Commerce and Industry. More information can be found on their website.As an alternative to an ATA carnet, businesses and individuals may be able to use the EU’s Temporary Admission procedure, when moving goods temporarily into the EU. The EU’s Temporary Admission procedure allows goods to enter the EU on a temporary basis without payment of duties subject to relevant conditions being met. Temporary Admission rules allow a customs declaration to be made orally or by conduct, by speaking to a customs official or driving through the green channel at port, in certain circumstances. This may be a cost-effective option for eligible businesses and individuals. The management of EU import and export procedures is the responsibility of the customs authorities of the Member States, so it is important that businesses and individuals confirm any conditions or procedures that may apply, such as the time limit that goods may remain in the EU without the payment of duty. Further information can be found on the EU’s website.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what is their definition of a Duplicate List with regard to the transportation of samples in the fashion industry.
Answered by Lord Agnew of Oulton
A Duplicate List is an alternative to using a full customs declaration when exporting goods temporarily or when claiming Returned Goods Relief (RGR). It involves the exporter preparing two copies of a list of all the goods being temporarily exported and presenting them to Customs, along with other customs paperwork. An extensive range of items can benefit from the Duplicate List procedure, including trade samples, although the Duplicate List can only be used for items in baggage accompanied by the traveller.
A copy of the list endorsed by Customs at export can be used as evidence of export to claim RGR when items are subsequently re-imported. Detail on the process and requirements for the Duplicate List can be found on Gov.uk.
RGR is a long-standing relief that allows eligible items to be reimported free from Customs duty and import VAT, if certain conditions are met. For example, they must not have been processed or repaired other than routine maintenance whilst outside the UK.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what discussions they are having with the EU to negotiate an exemption from ATA Carnets and CITES certification for temporary (1) import, and (2) export, between Great Britain and Northern Ireland.
Answered by Lord Agnew of Oulton
HMG published a Command Paper on 21 July setting out a proposed way forward on the Northern Ireland Protocol. This seeks to ensure that businesses and consumers can have normal access to goods from the rest of the UK and sets out a possible approach whereby movements that are purely between GB and NI do not require customs processes.
The Government is not having any discussions with the EU to negotiate an exemption from CITES certification or ATA Carnets for temporary import or export between Great Britain and Northern Ireland. CITES certification is required so as to continue to uphold the UK’s obligations under international agreements. ATA Carnets are not a requirement, they are an optional facilitation which allows goods to be imported temporarily without import duty being paid, and a single document to be used for multiple countries’ customs controls. The UK and approximately 80 countries around the world (including all EU member states) accept ATA Carnets and are signatories to the Customs Convention on the ATA Carnet and the Istanbul Convention on Temporary Admission which govern the use of Carnets.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government whether there will be a replacement for the social security certificate A1/E101 for self-employed UK citizens working in EEA countries; and, if so, what it will be.
Answered by Lord Agnew of Oulton
The UK continues to participate in EU social security coordination rules during the transition period, and the self-employed should continue to apply to HMRC for A1/E101 certificates as normal.
Self-employed individuals going to work in the EU, EEA or Switzerland on or after 1 January 2021 who remain subject to UK social security legislation will be entitled to an A1/E101 certificate if they are covered by the Withdrawal Agreement with the EU, the Swiss Citizens’ Rights Agreement or the EEA EFTA Separation Agreement. For those individuals not covered by these agreements, the Government published a mandate on 27 February which sets out its intention to negotiate a future EU-wide agreement on social security coordination, including on which countries’ legislation is applicable.
On 26 October, HMRC published an Agent Update which sets out some of the changes for the self-employed going to work in or coming from the EU, the EEA or Switzerland from 1 January 2021.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what will be the threshold number of (1) musical instruments, and (2) other related equipment, at which the holder will be required to purchase an ATA carnet for temporary export and import.
Answered by Lord Agnew of Oulton
The current process for ATA Carnets with convention countries outside the EU will apply to relevant imports and exports with the EU at the end of the transition period. This means that from January 2021, ATA Carnets will become one of the options available to both businesses and individuals when temporarily moving goods between the UK and EU countries.
Use of an ATA Carnet is optional and is a commercial decision on whether it is the most cost-effective method in each specific circumstance. There is no specific threshold for the use of an ATA Carnet.
In the UK, ATA Carnets are administered by the London Chamber of Commerce and Industry (LCCI). Further information on obtaining and using an ATA Carnet can be found by contacting the LCCI.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what financial support is available for people who are newly self-employed in the 2019-20 tax year, and what consideration they have given to allowing these individuals to access the Self-Employment Income Support Scheme.
Answered by Lord Agnew of Oulton
The Government recognises that those who started trading more recently will not have submitted a tax return for the 2018-19 tax year, and it considered alternative approaches. HMRC would not be able to distinguish genuine self-employed individuals who started trading in 2019-20 from fake applications by fraudulent operators and organised criminal gangs seeking to exploit the SEISS.
However, those who entered self-employment after April 2019 may still be eligible for other support. For example, the self-employed can benefit from the Government’s relaxation of the earnings rules (known as the Minimum Income Floor) in Universal Credit.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what consideration they have given to extending the Self-Employment Income Support Scheme to those who operate a limited company and take dividends as a source of income.
Answered by Lord Agnew of Oulton
Income from dividends is a return on investment in the company, rather than wages, and is not eligible for support. Under current reporting mechanisms it is not possible for HM Revenue and Customs to distinguish between dividends derived from an individual’s own company and dividends from other sources, and between dividends in lieu of employment income and as returns from other corporate activity. Expanding the scope would require HMRC to collect and verify new information. This would take longer to deliver and put at risk the other schemes which the Government is committed to delivering as quickly as possible.
However, those who pay themselves a salary through their own company may instead be eligible for the Coronavirus Job Retention Scheme (CJRS). The CJRS is available to employers, including personal service companies, and individuals paying themselves a salary through a PAYE scheme are eligible. For clarity, dividends are not covered by the CJRS.
Individuals who are not eligible for the Coronavirus Job Retention Scheme or the Self-Employment Income Support Scheme may have access to other support which the Government is providing, including the Bounce Back Loans Scheme for small businesses, the Coronavirus Business Interruption Loan Scheme, and the deferral of tax payments. More information about the full range of business support measures is available on gov.uk.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government whether they plan to bring VAT on digital publications in line with printed books following the EU's decision to allow all member states to give e-books and audiobooks the same VAT-free status as printed books.
Answered by Lord Bates
The Government keeps all taxes under review, including Value Added Tax (VAT) on e-publications.
Any amendments to the VAT regime as it applies to physical publications and e-publications must be carefully assessed against policy, economic and fiscal considerations.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty’s Government what are the current regulations with regard to the levying of value added tax on repairs and maintenance of old and listed buildings; and whether there are any plans to review or change such regulations.
Answered by Lord Deighton
Section 1 of the Value Added Tax Act 1994 determines that value added tax should be charged on a supply of goods or services. Section 2 of the same Act sets the standard rate at 20%. Repairs and maintenance of all buildings fall into this standard rate.
The Chancellor keeps all taxes under review.