Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
If his Department will make an assessment of the potential merits of making permanent the five per cent reduced rate of VAT for the tourism and hospitality sector.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of about 150,000 businesses and to protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Budget, this relief will now run until 31 March 2022, with a staggered return to the standard rate. Applying this relief permanently would come at a significant cost to the Exchequer, and that cost would have to be balanced by increased taxes elsewhere, or reductions in Government spending.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people who have been in settlement discussions with HMRC on the Loan Charge have settled their case.
Answered by Jesse Norman - Shadow Leader of the House of Commons
About 5,600 employers and individuals settled their use of disguised remuneration tax avoidance schemes in the period to 30 September 2020, in addition to the about 11,000 employers and individuals who settled their use of disguised remuneration schemes between Budget 2016 and 31 March 2020.
Further information on settlements is available in HMRC’s report to Parliament on the implementation of the recommendations of the independent Loan Charge Review, which was published on 3 December: https://www.gov.uk/government/publications/independent-loan-charge-review-hmrc-report-on-implementation.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people who will be declared bankrupt as a result of the implementation of the Loan Charge.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC do not want to make anybody bankrupt, and insolvency is only ever considered as a last resort. HMRC will work with individuals to reach sustainable and manageable payment plans wherever possible. In line with current practice, HMRC will pause recovery action where a taxpayer has no ability to pay, until there is a significant change of circumstance.
HMRC are not always the only creditor and some individuals may choose to enter insolvency themselves based on their overall financial position.
Anyone who is worried about being able to pay what they owe is encouraged to get in touch with HMRC as soon as possible on 03000 599110.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what training HMRC staff have on economic abuse.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC have safeguarding procedures for apprentices who are training in HMRC. These safeguarding procedures include mandatory training for everyone working with or managing tax apprentices, as well as the apprentices themselves. This safeguarding training covers the indicators of economic, or financial, abuse relating to vulnerable adults.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has undertaken a recent assessment of the potential effects on businesses in the UK of leaving the EU VAT area.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Leaving the EU without a negotiated settlement is not the Government’s preferred outcome, but it is essential that the UK is prepared for all possible eventualities on customs, VAT and excise arrangements.
As part of the no deal preparations, HMRC have published guidance and technical notices for businesses and their advisors on customs, excise and VAT, as well as a collection of letters and guides.
HMRC have published a collection of impact assessments on GOV.UK which are available at https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal#impact-assessments
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what reports he has received on young people not receiving their national insurance number on time; and what the reason is for delays in sending out national insurance numbers.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC automatically issues letters to children advising them of their National Insurance number (NINo) as they approach their 16th birthday. Following a change in the way in which HMRC identifies these children, there was a delay in the issue of some NINo letters. Individuals with concerns can contact HMRC’s helpline on 0300 200 3500.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what proportion of appeals against HMRC decisions on (a) pay as you earn and (b) income tax were upheld in the last calendar year.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Information in the form requested is not readily available and could only be obtained, compiled and collated at disproportionate cost.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what plans he has to make fuel more affordable for people in rural areas.
Answered by Andrew Jones
Since 2010 those living in the Inner and Outer Hebrides, the Northern Isles, the islands in the Clyde and the Isles of Scilly have benefitted from a 5 pence per litre fuel price cut. In 2015 this scheme was extended to benefit those people living across seventeen of mainland UK’s most rural communities.
However, the Government recognises that fuel costs remain a significant part of business and household costs. This is why, at Autumn Statement 2016, the Government announced the main rate of fuel duty would remain frozen for the seventh successive year, saving the average driver £130 a year.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the number of additional revenue and customs officials potentially required to carry out additional customs declarations after the UK leaves the EU customs union.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The resources and staffing levels required by HMRC after the UK leaves the European Union will be dependent on the outcome of negotiations.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent assessment the Government has made of the effect on the flow of goods and people at UK ports of the UK leaving the EU customs union.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The Government is committed to securing the most frictionless trading relationship possible with the EU. HMRC is working with other government departments which share the responsibility for maintaining the flow of trade and passengers through our borders to help achieve this.