Asked by: Lord Bradshaw (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what action they intend to take to ensure that businesses trading on a cash-only basis are paying the required tax.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government is committed to creating a level playing field for all sectors by ensuring that everyone pays the right amount of tax at the right time. Like all other businesses, those which exclusively accept cash must meet their tax obligations.
Cash is a legitimate means of paying for goods and services, but sometimes cash payments/transactions are used to deliberately facilitate tax evasion.
HMRC’s approach to tax evasion aims to tackle current non-compliance and change future behaviours. Their activities include national campaigns and specialist task forces that incorporate intensive bursts of targeted activity in high risk trade sectors and locations across the UK. HMRC also work with customer groups and third parties, such as other local and central Government agencies, to reduce error and fraud within these sectors. This includes providing customer education highlighting the importance of keeping accurate records.
HMRC take reports of suspected tax evasion seriously and operate a confidential Fraud Hotline.
The Government will continue to consider options to tackle cash-facilitated evasion.
Asked by: Lord Bradshaw (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 20 December 2023 (HL1133), whether the prosecutions referred to are for income tax or VAT offences, and what assessment they have made of the sufficiency of the resources targeting these offences.
Answered by Baroness Vere of Norbiton
The prosecutions and convictions referenced in the answer I gave on 20 December 2023 to PQ HL1133 relate to all HMRC compliance related offences irrespective of tax head.
HMRC’s aim is for everyone to pay the tax that is legally due, no matter who they are. It has achieved a long-term reduction in the UK’s tax gap from 7.5% in 2005-06 to 4.8% in 2021-22.
HMRC tailors compliance activity, including allocation of resources, depending on the level of risk in each tax head, but also on customer behaviours and capability. This allows the Department to identify compliance risks and customer needs, and adapt its approach where necessary – to offer more support to help people get their tax right, or to take targeted action against avoidance, evasion and criminal attacks.
The most effective way it can ensure the right tax is paid is through the overall design of the tax system – improving processes to remove opportunities for error and fraud, and taking preventative action to educate and help customers get their taxes right first time.
Criminal investigation, with a view to prosecution, is an important part of HMRC’s overall compliance strategy. HMRC will conduct criminal investigations and seek criminal prosecutions where the behaviour displayed is such that only a criminal sanction is appropriate, or where a criminal prosecution will act as a strong deterrent.
The rules are the same for everyone, but tailoring the approach helps HMRC to respond in the most targeted, proportionate and effective way.
The resource available for HMRC and its compliance work is agreed with ministers at Spending Reviews and Fiscal Events. The agreed level is shaped by economic factors and enables HMRC to carry out the compliance activity required to maintain a stable tax gap over the medium term.
Asked by: Lord Bradshaw (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether the Treasury considers net revenue implications when making decisions that relate to the capacity of railway services.
Answered by Baroness Vere of Norbiton
DfT is responsible for decisions relating to the capacity of rail services. When proposals require HM Treasury ministers’ approval, they consider a range of factors, including revenue and cost (i.e. the impact on the taxpayer).
Asked by: Lord Bradshaw (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the answer by Baroness Vere of Norbiton on 22 November (HL210), how many successful prosecutions there were as a result of HMRC investigations into the activities of the activities of businesses which advertise their services on a cash only basis in the financial year ended 2022–23.
Answered by Baroness Vere of Norbiton
As referenced in the answer I gave on 22 November 2023 to PQ HL210 the Government is committed to creating a level playing field for all sectors by ensuring that everyone pays the right amount of tax at the right time. Like all other businesses, those which exclusively accept cash must meet their tax obligations. HMRC use a range of interventions, including civil and criminal investigations, to tackle non-compliance.
HMRC reserves complete discretion to conduct a criminal investigation in any case and to carry out these investigations across a range of offences and in all the areas for which the Commissioners of HMRC have responsibility. In 2022/23, 240 prosecutions were brought by the relevant prosecuting authority as a result of HMRC criminal investigations, securing 218 convictions for a range of offences.
The specific data requested – detailing prosecution numbers for businesses which advertise their services on a cash-only basis – is not available as HMRC systems do not segment data in a way that would allow the required analysis, and therefore this information would only be available at disproportionate cost.
Further information on HMRC’s approach to tackling fraud, including other performance information, can be found at HMRC performance update: April to June 2023 – GOV.UK (www.gov.uk)
Asked by: Lord Bradshaw (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they take to ensure that small businesses offering personal services advertising as cash only pay all their taxes and charges and are not avenues for money laundering.
Answered by Baroness Vere of Norbiton
The Government is committed to creating a level playing field for all sectors by ensuring that everyone pays the right amount of tax at the right time. Like all other businesses, those which exclusively accept cash must meet their tax obligations.
HMRC’s approach to tax evasion aims to tackle current non-compliance and change future behaviours. Their activities include national campaigns and specialist task forces that incorporate intensive bursts of activity in targeted high risk trade sectors (including the retail and service industry) and locations across the UK. HMRC also works with customer groups and third parties, such as other local and central Government agencies, to reduce error and fraud within these sectors. This includes providing customer education highlighting the importance of keeping accurate records.
HMRC uses a range of data and intelligence sources, including compliance visits, when necessary, to ensure businesses are complying with their tax obligations but also aren’t engaged in any other illicit activity like money laundering. If suspicions of money laundering are identified, and it is appropriate for HMRC to investigate, the department works with the appropriate prosecuting authority to pursue a criminal prosecution for money laundering.
HMRC take any report of suspected tax evasion seriously and operate a confidential Fraud Telephone Hotline and an online reporting tool available on GOV.UK.
Asked by: Lord Bradshaw (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to the Written Answer by Lord Agnew of Oulton on 4 May (HL3177), what was the total fuel duty received from hydrocarbon oils used in inland transport in each year from 2010 to 2019.
Answered by Lord Agnew of Oulton
Total Fuel Duty received from 2010 to 2019 was as follows. As HM Revenue and Customs does not request usage information within traders’ returns to avoid unnecessary admin burdens to business it is not possible to break these down by inland transport.
2010: £27.0 billion
2011: £26.9 billion
2012: £26.7 billion
2013: £26.7 billion
2014: £27.1 billion
2015: £27.4 billion
2016: £28.0 billion
2017: £28.0 billion
2018: £27.9 billion
2019: £27.8 billion
Total Fuel Duty revenue statistics are published within HM Revenue and Customs Hydrocarbon Oils Bulletin published every March, June, September and December at HMRC’s ‘UK Trade Info’ online portal.
Asked by: Lord Bradshaw (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of any impact in the reduction of vehicles running on diesel and petrol on tax revenue.
Answered by Lord Agnew of Oulton
Any fall in demand for road fuels impacts fuel duty revenue. Fuel duty is an important source of revenue, and the government keeps receipts under review. HMRC publish fuel duty statistics as part of the Hydrocarbon Oils Bulletin.
This contains data up to February 2020 and data up to May 2020 will be published here in June. The work of the last ten years in bringing borrowing and debt back under control has ensured that the public finances are well placed to deal with the challenges posed by COVID-19.
Asked by: Lord Bradshaw (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether they have given new policy guidance to the National Infrastructure Commission following the Government's decision to implement a target for net-zero emissions by 2050.
Answered by Earl of Courtown - Opposition Deputy Chief Whip (Lords)
Infrastructure will be central to meeting the UK’s 2050 zero-emissions targets, and so decarbonisation will be one of the central objectives of the National Infrastructure Strategy (NIS), due to be published alongside the Budget.
The NIS will also provide the Government’s formal response to the National Infrastructure Commission’s (NIC’s) 2018 assessment of the UK’s infrastructure needs, which included a range of recommendations relating to decarbonising the UK economy.
As per the NIC’s framework document, the NIC must already take account of the Government’s legal obligations, including carbon reduction targets or assessments of environmental impacts.
Asked by: Lord Bradshaw (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government which government department receives the fines generated from the enforcement of O licences of goods vehicles.
Answered by Lord Deighton
The Driver and Vehicle Standards Agency (DVSA) are the main body responsible for enforcement of operator licences for goods vehicles, although individual police forces also have the power to enforce these provisions. DVSA enforcement action consists of prosecution through the courts – in 2013-14 they reported 174 convictions resulting in courts ordering £103,244 in fines. These fines are collected by the courts and all revenue raised is passed on to the Consolidated Fund, and used to fund general government expenditure.
Asked by: Lord Bradshaw (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether (1) they are satisfied that the system of appraising transport projects, as set out in the Treasury Green Book, takes sufficient account of the wider economic effects, such as on employment, access to training, linking housing provision to employment opportunities and addressing the potential of run down areas of cities, and (2) they plan to revise the guidance on the appraisal of such projects.
Answered by Lord Deighton
The Green Book requires that all new policies, programmes and projects be subject to a comprehensive but proportional assessment of value for money and that, wherever feasible, all impacts of the proposal should be accounted for within the social cost benefit appraisal.
The Department for Transport appraises transport investment using the Department’s Transport Analysis Guidance, which is fully compliant with the Green Book. The guidance takes into account a number of wider economic impacts, such as labour market effects and agglomeration economies. The Department also appraises the impacts of transport investments on unlocking housing developments and regeneration areas. Where appropriate these impacts are quantified and monetised for transport schemes.
The government guidance on project appraisal, including that specifically relating to transport investment, is kept under constant review and is updated and developed when appropriate.