Asked by: Barbara Keeley (Labour - Worsley and Eccles South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the average length of time was for companies to receive (a) PAYE reference and (b) VAT numbers after submitting an application in (i) May 2022, (ii) November 2022 and (iii) May 2023.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC publishes monthly and quarterly performance data on GOV.UK
https://www.gov.uk/government/collections/hmrc-monthly-performance-reports
https://www.gov.uk/government/collections/hmrc-quarterly-performance-updates
Asked by: Barbara Keeley (Labour - Worsley and Eccles South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of HMRC processing times for (a) PAYE reference numbers and (b) VAT numbers on British theatre companies; and if he will make a statement.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC are processing applications within service level.
While awaiting a VAT number, businesses can continue to operate and should begin maintaining records and accounting for VAT on the date they become liable to register. VAT should not be disclosed separately until the registration number is received, but businesses should inform VAT-registered customers that VAT invoices will be issued later.
While waiting for a PAYE reference, businesses in any industry can continue to trade and retain records from the date the business begins to employ staff, which can then be reported to HMRC once the reference is allocated.
Asked by: Barbara Keeley (Labour - Worsley and Eccles South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of restricting charitable tax reliefs to UK charities on the number of donations to UK causes from overseas donors.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Restricting charitable tax reliefs to UK charities is not expected to have any impact on the level of donations to UK causes from overseas donors. Overseas donors will be able to continue supporting UK charities and causes in exactly the same way as they have always done.
Asked by: Barbara Keeley (Labour - Worsley and Eccles South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of trends in the level of uptake of Gift Aid.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Information on trends in the amount of Gift Aid HMRC pays to charities is available in the Charity Tax Relief statistics at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1092066/Tables_1_and_2_-_summary.pdf.
No formal assessment of trend has been made.
Asked by: Barbara Keeley (Labour - Worsley and Eccles South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report entitled Creative Industry Tax Reliefs Evaluation, published on 17 November 2022, whether his Department plans to commission a similar evaluation on Cultural Tax Reliefs.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC has a programme for evaluating tax reliefs and has published criteria which are used to decide which reliefs should be evaluated. Against these criteria, cultural reliefs have not been assessed as being a priority. HMRC published research on the museum and gallery exhibition tax relief in 2022. Cultural reliefs will be reconsidered for evaluation in future.Asked by: Barbara Keeley (Labour - Worsley and Eccles South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the estimated Exchequer impact of the two-year tapered rate increase of Theatre, Orchestra and Museums and Galleries Exhibitions Tax Reliefs, published in the Autumn Budget and Spending Review 2021: Policy costings on 27 October 2021, what was the Exchequer impact of the uplifted rate for 2021-22.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government recognises the value of the UK’s world leading creative industries and arts sectors.
At Autumn Budget 2021, the Government temporarily increased the headline rates of theatre tax relief (TTR), orchestra tax relief (OTR), and museums and galleries exhibition tax relief (MGETR) in recognition of the impact of the Covid-19 pandemic on these sectors.
The headline rates of relief for the TTR and the MGETR were temporarily increased from 20 per cent (for non-touring productions) and 25 per cent (for touring productions) to 45 per cent and 50 per cent. From 1 April 2023, the rates will be reduced to 30 per cent and 35 per cent and will return to 20 per cent and 25 per cent on 1 April 2024. OTR rates temporarily increased from 25 per cent to 50 per cent, reducing to 35 per cent from 1 April 2023 and returning to 25 per cent on 1 April 2024.
In the year 2021-2022, £38 million of TTR was paid in response to 620 claims, representing 2,055 productions. £10 million of OTR was paid in response to 100 claims, representing 510 productions. £9 million of MGETR was paid in response to 145 claims, representing 1,060 exhibitions.
Asked by: Barbara Keeley (Labour - Worsley and Eccles South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of valid claims for Theatre Tax Relief were paid within 28 days of receipt in the period since 1 April 2022.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC aims to pay claims for all tax reliefs as soon as possible. Since 1 April 2022, 78 per cent of valid claims for Theatre Tax Relief have been paid within 28 days of receipt. This figure fluctuates over the year and reflects the position as of 26 January 2023.
Asked by: Barbara Keeley (Labour - Worsley and Eccles South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of expanding the Orchestra Tax Relief scheme to include claims on costs incurred on goods and services for digital concerts.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government recognises the value of the UK’s world leading creative industries and arts sectors.
Since theatre tax relief (TTR) was introduced in 2014, £392 million of relief has been paid out, supporting 17,820 productions as of the year 2021-22. £62 million of orchestra tax relief (OTR) has been paid out since it was introduced in 2016, supporting 2,640 productions as of the year 2021-2022.
At Autumn Budget 2021, the Government temporarily increased the headline rates of TTR and OTR in recognition of the impact of the Covid-19 pandemic on these sectors. The headline rate of relief for TTR was increased from 20 per cent (for non-touring productions) and 25 per cent (for touring productions) to 45 per cent and 50 per cent. From 1 April 2023, the rates will be reduced to 30 per cent and 35 per cent and will return to 20 per cent and 25 per cent on 1 April 2024. The headline rate of OTR was temporarily increased from 25 per cent to 50 per cent, reducing to 35 per cent from 1 April 2023 and returning to 25 per cent on 1 April 2024.
Whilst the Government keeps all tax reliefs under review, the Government is not planning to expand the qualifying costs for OTR or TTR.
Asked by: Barbara Keeley (Labour - Worsley and Eccles South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the reduction from April 2023 of (a) Orchestra and (b) Theatre Tax Relief on the financial sustainability of the cultural sector.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government recognises the value of the UK’s world leading creative industries and arts sectors.
Since theatre tax relief (TTR) was introduced in 2014, £392 million of relief has been paid out, supporting 17,820 productions as of the year 2021-22. £62 million of orchestra tax relief (OTR) has been paid out since it was introduced in 2016, supporting 2,640 productions as of the year 2021-2022.
At Autumn Budget 2021, the Government temporarily increased the headline rates of TTR and OTR in recognition of the impact of the Covid-19 pandemic on these sectors. The headline rate of relief for TTR was increased from 20 per cent (for non-touring productions) and 25 per cent (for touring productions) to 45 per cent and 50 per cent. From 1 April 2023, the rates will be reduced to 30 per cent and 35 per cent and will return to 20 per cent and 25 per cent on 1 April 2024. The headline rate of OTR was temporarily increased from 25 per cent to 50 per cent, reducing to 35 per cent from 1 April 2023 and returning to 25 per cent on 1 April 2024.
Whilst the Government keeps all tax reliefs under review, the Government is not planning to expand the qualifying costs for OTR or TTR.
Asked by: Barbara Keeley (Labour - Worsley and Eccles South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 December 2022 to Question 105279 on Orchestras and Theatre: Tax Allowances, what the average claim amount was for the 15 per cent of valid claims for Theatre and Orchestra Tax Reliefs that were not paid within 28 days of receipt.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC is not able to disclose how much relief is currently outstanding to companies. This data is not available until the claims have been reviewed and HMRC is able to confirm how much payment is due.
We do not calculate average claim amounts for those claims which were not processed within 28 days, as any figures could be misleading. They would not be representative of the range in size and complexity of claims we receive, nor demonstrate the range of reasons why these claims are not paid within 28 days. Such reasons range from simple administrative issues such as missing payment details, to more complex issues requiring the claim to be reviewed in more detail before payment can be released.