Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what revenue has accrued to the public purse from taxation on the purchase of digital books.
Answered by Jesse Norman
The details that HM Revenue and Customs (HMRC) collect from taxpayers on their VAT returns do not provide enough detail to be able to quantify precisely the revenue raised from these supplies. HMRC do not require detail on particular products and customer types because it would place a considerable administrative burden on businesses.Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much revenue has accrued to the public purse from IR35 in each year since it was implemented.
Answered by Jesse Norman
The off-payroll working rules (IR35) have been in place for nearly 20 years. They are designed to ensure that individuals working like employees but through their own company pay broadly the same tax and National Insurance contributions (NICs) as other employees who are directly employed.
HMRC do not have an annual breakdown of revenue received from the application of the off-payroll working rules. The Government estimates that only one in ten personal services companies (PSCs) who should be operating the rules are doing so. This non-compliance is projected to increase from £700 million per year in 2017/18 to £1.3 billion per year in 2023/24.
HMRC have measured the impact of reforming the off-payroll rules in the public sector and estimate that the reform has already raised an additional £550 million in income tax and NICs in the first 12 months since it was introduced.
Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of changes to IR35 on the number of people working as (a) freelancers and (b) contractors in the UK.
Answered by Jesse Norman
The Tax Information and Impact Note (TIIN) published in July 2019 sets out HMRC’s assessment that the reform to the off-payroll working rules is expected to affect 170,000 individuals. The TIIN can be found here: https://www.gov.uk/government/publications/rules-for-off-payroll-working-from-april-2020/rules-for-off-payroll-working-from-april-2020.
HMRC are undertaking an extensive programme of education and support to help organisations and contractors prepare for the reform.
As a result of the review into the reform of the off-payroll working rules published on 27 February 2020, HMRC are ramping up communication, including webinars and guides, to support contractors in understanding the rules. This will complement the significant work already being taken to support businesses to prepare.
Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment the Government has made of the effect of funding allocated from the public purse to education in each region on the level of productivity in those regions.
Answered by Simon Clarke
When considering funding for public services, including education, the government considers a range of factors as a matter of course, including the impact on regional productivity. The Government is committed to uniting and levelling up, spreading opportunity across the whole of the UK - we are looking at how best to do this and I will set out more details in due course.
Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment the Government has been made of the effect of recent changes to Vehicle Excise Duty on the motorhome industry in (a) the UK, (b) Yorkshire and the Humber and (c) Haltemprice and Howden constituency.
Answered by Simon Clarke
The Government reformed VED for motorhomes to encourage the uptake of vehicles with lower carbon dioxide (CO2) emissions to help us meet our legally binding climate change targets. It is right that under the reformed system motorhomes with high CO2 emissions pay greater first year VED than those with lower emissions.
However, I have met with representatives of the industry and I am sensitive to their concerns. The Government is committed to levelling up economic performance throughout the country, including in Yorkshire and the Humber.
As with all taxes, the Government keeps the VED treatment of motorhomes under review. Any changes will be considered by the Chancellor and announced at fiscal events.
Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people who would remain within scope of the Loan Charge if the recommendations of the Independent Review into the Loan Charge are fully implemented.
Answered by Jesse Norman
The Government published Sir Amyas Morse’s independent review of the Loan Charge on 20 December, alongside the Government’s response to his recommendations.
The Government accepted all but one of Sir Amyas’s recommendations. This means that out of the estimated 50,000 individuals who used a loan scheme between 1999 and 2019 and did not settle with HMRC before March 2016, it is estimated that more than 30,000 people will benefit from the significant package of measures announced, 11,000 of whom will be taken out of scope of the charge altogether.
Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much revenue has accrued to the public purse as a result of the sugar tax in each year since it was introduced.
Answered by Simon Clarke
Payment of SDIL must be made to HMRC within 30 days after the end of the quarterly liability period. Based on cash receipts, the estimated accrual of SDIL for 2018/19 is £318m, and for the period between April and September 2019/20, £85m.
Monthly and annual receipts from the Soft Drinks Industry Levy are published in HMRC’s National Statistics publication, which can be accessed via this link:
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk
Money that is collected from the levy helps fund physical education activities in primary schools, the Healthy Pupils Capital Fund.
Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the effect of the 2019 Loan Charge on the (a) mental health and (b) livelihoods of people affected by that Charge.
Answered by Jesse Norman
The Government published a report on the loan charge in March 2019. The report was required by section 95 of Finance Act 2019, but goes wider than the review set out in legislation, explaining the rationale for the charge and considering its impacts. The report also provides information on how HM Revenue and Customs (HMRC) support individuals affected by the loan charge including, where appropriate, referring individuals who need additional support to organisations such as Samaritans and Mind. The report is available online at:
www.gov.uk/government/publications/report-on-time-limits-and-the-disguised-remuneration-loan-charge.
Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the amount of tax revenue accrued was from UK small businesses in 2017-18.
Answered by Mel Stride - Secretary of State for Work and Pensions
Total tax revenue accrued from micro and small sized businesses combined was estimated to be approximately £120 billion in 2016/17. An estimate for 2017/18 will not become available until Autumn 2019.
The estimate given includes Self-Assessment Income Tax and Class 4 National Insurance Contributions (NICs), Corporation Tax, VAT, and Pay As You Earn Income Tax and Class 1 NICs. The definition of micro and small sized businesses used is consistent with the EU definition where possible. HMRC works to collect tax due under UK law from all businesses, regardless of size, in the most cost effective way.
The government has also taken a number of steps which benefit small businesses through the tax system. Since Budget 2016 the government has announced reductions to business rates worth more than £13bn over the next five years. NICs bills are also reduced by up to £3,000 for over one million employers, and the UK is also highly competitive, with the lowest overall corporation tax rate in the G20 at 19%. The rate is legislated to fall further to 17% in 2020.
Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the (a) the revenue of Amazon Web Services in the UK and (b) the tax paid on that revenue in the last financial year.
Answered by Mel Stride - Secretary of State for Work and Pensions
Ministers are not privy to the tax affairs of individual companies and so do not have estimates of the total revenue or tax liability Amazon Web Services generate in the UK. Some of this information may be found Amazon’s published accounts, including those of UK companies that are available at Companies House.