Asked by: Lord Mawson (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the barriers to access finance for purchasing cars.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government recognises the critical role the motor finance market plays in allowing people to own their own vehicle. The government is engaging with a broad range of stakeholders to monitor issues in the motor finance market.
Asked by: Lord Mawson (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what research they have done into the time and costs for small and medium-sized enterprises of implementing the Making Tax Digital scheme.
Answered by Lord Bates
HMRC has worked extensively with stakeholders across the business and accountancy fields to help shape the design and timing of Making Tax Digital (MTD). The Government is confident that MTD will be delivered in a way that works for businesses of all sizes and sectors.
HMRC has published an Impact Assessment for MTD which was developed in consultation with external stakeholders, and informed by both quantitative and qualitative evidence.
Asked by: Lord Mawson (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what experience those responsible for developing the Making Tax Digital policy have of running a small business.
Answered by Lord Bates
HMRC has worked extensively with stakeholders across the business and accountancy fields to help shape the design and timing of Making Tax Digital (MTD). The Government is confident that MTD will be delivered in a way that works for businesses of all sizes and sectors.
HMRC has published an Impact Assessment for MTD which was developed in consultation with external stakeholders, and informed by both quantitative and qualitative evidence.
Asked by: Lord Mawson (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether VAT is being added to the cost of site staff at supported housing facilities for elderly people and similar schemes; and what assessment they have made of the (1) financial, and (2) practical implications of that policy for (a) such facilities, and (b) elderly residents of those facilities who have limited resources.
Answered by Lord Bates
The supply of any on-site staff to an individual, landlord or company has, since the inception of VAT, been a taxable supply.
As there has been no change in government policy in this area, no financial or practical assessment on implications of this policy for housing facilities for elderly people has been carried out.
Any individuals facing difficulties in meeting their accommodation costs may want to contact the Department for Work and Pensions to establish whether they are entitled to any additional financial support.
Asked by: Lord Mawson (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what assessment they have made of the impact on (1) small and medium-sized enterprises, and (2) charities, of having to comply with the requirements of the Employment Status Indicator when procuring services from individuals.
Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)
At Budget 2016, the Government announced that from April 2017, where public sector workers are engaged through their own limited company, responsibility to operate the off-payroll working rules (often known as IR35) and deduct any associated tax and National Insurance will fall to the public sector body, agency or other third party paying the worker’s company. The reform does not introduce a new liability, but aims to ensure that the current rules work as intended. HM Revenue and Customs (HMRC) published an assessment of the administrative burdens of this legislative reform at Budget 2016 and this was updated on 8 March 2017. This assessment also covers charities and small and medium sized businesses.
To help customers know when the off-payroll working in the public sector rules apply, HMRC has developed, after extensive consultation, an online “Check Employment Status for Tax” (CEST) advice service. CEST replaces the old Employment Status Indicator.
Affected businesses will incur one-off costs for familiarisation with the new rules and this includes using CEST. Ongoing costs for using CEST are expected to be negligible. It is an optional service which sits alongside detailed online guidance on employment status.
Asked by: Lord Mawson (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what assessment they have made of the cumulative effect of changes to laws and regulations relating to VAT on (1) small and medium-sized enterprises, (2) charities, and (3) churches.
Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)
The Government assesses the impact on businesses and civil society organisations of each change in VAT law and publishes these assessments in Tax Information and Impact Notes. This does not assess cumulative effects.
Asked by: Lord Mawson (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what assessment they have made of the regulation of the mortgage market and the effects of that regulation on the ability of people to obtain mortgages in a timely and efficient manner.
Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)
The government is committed to increasing competition in banking and creating an environment in which firms compete to offer a range of products that suit the varying needs of their customers.
The Government has not undertaken a formal assessment of the regulation of the mortgage market and the effects of that regulation on the ability of people to obtain mortgages in a timely and efficient manner.
Although the Treasury sets the legal framework for the regulation of financial services, specific rules are a matter for the FCA whose day-to-day operations are independent from government control and influence.
In May 2016 the FCA published a review which assessed the impact of recent changes to the regulation of mortgage lending. Where lending is affordable, the FCA did not see evidence that the responsible lending rules have prevented creditworthy consumers obtaining loans.
In May 2016 the FCA launched a targeted Market Study into consumers’ ability to make effective choices in the mortgage market. The FCA plan to publish an interim report in summer 2017 and a final report in early 2018.
Asked by: Lord Mawson (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they have considered the merits of exempting social enterprises from paying corporation tax.
Answered by Lord Young of Cookham
Many social enterprises are charities, which are exempt from Corporation Tax on most income and gains if they are used for charitable purposes.
The Government has also taken steps to support social enterprises by introducing the Social Investment Tax Relief (SITR). SITR provides tax relief to individuals when they invest in qualifying social enterprises.
The Government has no plans to exempt all social enterprises from paying Corporation Tax, but keeps all tax policy under review.
Asked by: Lord Mawson (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what changes the Financial Conduct Authority has implemented regarding the setting up of bank accounts for customers in the United Kingdom over the past year; and what assessment they have made of the impact of such changes on the time it takes to set up a bank account in the UK.
Answered by Lord O'Neill of Gatley
The Financial Conduct Authority (FCA) is operationally independent from Government and carries out its functions within the framework of statutory objectives and duties agreed by Parliament. This includes requirements to publicly consult and perform cost benefit analysis on their relevant rules and policies. These questions are therefore a matter for the FCA as an independent regulator.
The questions have been passed on to the FCA. The FCA will reply directly to the Noble Lord by letter. A copy of the letter will be placed in the Library of the House.
Asked by: Lord Mawson (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what assessment they have made of the Financial Conduct Authority’s regulation of the banking sector, and of the impact of its regulation on banks’ ability to respond to the needs of customers.
Answered by Lord O'Neill of Gatley
The Financial Conduct Authority (FCA) is operationally independent from Government and carries out its functions within the framework of statutory objectives and duties agreed by Parliament. This includes requirements to publicly consult and perform cost benefit analysis on their relevant rules and policies. These questions are therefore a matter for the FCA as an independent regulator.
The questions have been passed on to the FCA. The FCA will reply directly to the Noble Lord by letter. A copy of the letter will be placed in the Library of the House.