Asked by: Lord Forsyth of Drumlean (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Smith of Malvern on 16 September (HL602), what plans, if any, they have to conduct an impact assessment and cost benefit analysis of the introduction of VAT on private school fees prior to implementation; and what advice they received from the accounting officer regarding their plans for implementation and the quality and validity of the research cited in the previous answer.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
Whilst developing this policy, the Government has carefully considered the impact it will have on pupils and their families across both the state and private sector, as well as the impact it will have on state and private schools. Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, the Government will confirm its approach to these reforms at the Budget on 30 October, and set out its assessment of the expected impacts of this policy in a Tax Information and Impact Note in the usual way.
Asked by: Lord Forsyth of Drumlean (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of any additional gross earnings needed by working people to meet the cost of the planned introduction of VAT on independent school fees.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
The Government will confirm the introduction of these tax policy changes at the Budget on 30 October. Details of the Government’s assessment of the expected impacts of these policy changes will be published at the Budget in the usual way.
The Government does not expect fees to go up by 20 per cent as a result of this policy change, and the Government expects private schools to take steps to minimise fee increases.
Recognising the enormous sacrifices our military families make, the Ministry of Defence provide the Continuity of Education Allowance (CEA) to eligible Service Personnel. The Government will monitor closely the impact of these policy changes on affected military families, with any changes to this scheme considered at the upcoming Spending Review.
The Government has considered the policy’s interaction with Human Rights law, and is confident that it is compatible with all of the UK’s human rights obligations.
Asked by: Lord Forsyth of Drumlean (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they have taken to ensure that the planned introduction of VAT on independent school fees is consistent with the European Convention on Human Rights.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
The Government will confirm the introduction of these tax policy changes at the Budget on 30 October. Details of the Government’s assessment of the expected impacts of these policy changes will be published at the Budget in the usual way.
The Government does not expect fees to go up by 20 per cent as a result of this policy change, and the Government expects private schools to take steps to minimise fee increases.
Recognising the enormous sacrifices our military families make, the Ministry of Defence provide the Continuity of Education Allowance (CEA) to eligible Service Personnel. The Government will monitor closely the impact of these policy changes on affected military families, with any changes to this scheme considered at the upcoming Spending Review.
The Government has considered the policy’s interaction with Human Rights law, and is confident that it is compatible with all of the UK’s human rights obligations.
Asked by: Lord Forsyth of Drumlean (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the total additional cost to military families of the planned introduction of VAT at 20 per cent on independent school fees.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
The Government will confirm the introduction of these tax policy changes at the Budget on 30 October. Details of the Government’s assessment of the expected impacts of these policy changes will be published at the Budget in the usual way.
The Government does not expect fees to go up by 20 per cent as a result of this policy change, and the Government expects private schools to take steps to minimise fee increases.
Recognising the enormous sacrifices our military families make, the Ministry of Defence provide the Continuity of Education Allowance (CEA) to eligible Service Personnel. The Government will monitor closely the impact of these policy changes on affected military families, with any changes to this scheme considered at the upcoming Spending Review.
The Government has considered the policy’s interaction with Human Rights law, and is confident that it is compatible with all of the UK’s human rights obligations.
Asked by: Lord Forsyth of Drumlean (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to the answer by Baroness Penn on 4 July (HL Deb), whether they will increase the allowable mileage rate for employees using their own vehicles for business purposes from 45 pence per mile, given the increased cost of fuel.
Answered by Baroness Penn
The Government sets the Approved Mileage Allowance Payments (AMAP) rates to minimise administrative burdens. The AMAP rates aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAP rates. Fuel costs only contribute to a fraction of the AMAP rates and not the total rate.
Employers are not required to use the AMAP rates. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.
Alternatively, they can choose to pay a different mileage rate that is higher or lower than the AMAP rates. If an employee is paid less than the approved amount, they are allowed to claim Mileage Allowance Relief (MAR) from HMRC. However, if the payment exceeds the relevant AMAP rate, and this results in a profit for the individual, they will be liable to pay Income Tax and National Insurance contributions on the difference.
As with all taxes and allowances, the Government keeps the AMAP rates under review and any changes are considered by the Chancellor.
Asked by: Lord Forsyth of Drumlean (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether Netflix will be subject to the Digital Services Tax.
Answered by Lord Agnew of Oulton
The administration of the tax system is a matter for HM Revenue and Customs. It would not be appropriate for Treasury ministers to become involved in or to comment on the administration of the tax system in specific cases.
Asked by: Lord Forsyth of Drumlean (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to ensure that Netflix’s revenues in the UK are subject to an appropriate level of taxation.
Answered by Lord Agnew of Oulton
The administration of the tax system is a matter for HM Revenue and Customs. It would not be appropriate for Treasury ministers to become involved in or to comment on the administration of the tax system in specific cases.
Asked by: Lord Forsyth of Drumlean (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government how much tax relief Netflix received under the creative industry tax reliefs for Corporation Tax scheme.
Answered by Lord Agnew of Oulton
The administration of the tax system is a matter for HM Revenue and Customs. It would not be appropriate for Treasury ministers to become involved in or to comment on the administration of the tax system in specific cases.
Asked by: Lord Forsyth of Drumlean (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to the Written Answer by Lord Agnew of Oulton on 22 June (HL5467) and given that notice payments to employees who are being made redundant are not redundancy payments, whether they will now answer the question put, namely whether it is their intention that employers are reimbursed under the Coronavirus Job Retention Scheme for employees who are under notice of redundancy.
Answered by Lord Agnew of Oulton
Pay during the redundancy notice period is based on the individual’s rights under their contract of employment and the statutory right to notice pay (under section 86 and the following sections of the Employment Rights Act 1996). The rules on statutory notice pay are complex and depend on whether the employer is required to give only statutory notice, or at least a week more than statutory notice, and whether the employee has normal working hours or not. For any period of notice which exceeds the minimum statutory requirement, the terms of the contract of employment would need to be considered.
In these very difficult times, the Government would not expect an employer to take advantage of the Coronavirus Job Retention Scheme, which has brought benefit to employers and employees alike, to make someone redundant on less favourable terms than they would otherwise have received.
Asked by: Lord Forsyth of Drumlean (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether it is their intention that employers are reimbursed under the Coronavirus Job Retention Scheme for employees who are under notice of redundancy.
Answered by Lord Agnew of Oulton
The Coronavirus Job Retention Scheme (CJRS) has been successful in supporting employers whose operations have been severely affected by coronavirus in retaining their employees and protecting the UK economy.
Where a business considers that redundancy is the only option, standard employment law applies to employees on furlough. CJRS grants cannot be used to substitute redundancy payments.