Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress HMRC has made on its assessment of Hill Top Leaf Ltd's application to the Enterprise Investment Scheme.
Answered by Jesse Norman
HMRC do not disclose information about individual taxpayers.
Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people have used HMRC's Alternative Dispute Resolution scheme through (a) arbitration and (b) mediation in each year since the introduction of that scheme.
Answered by Jesse Norman
Alternative Dispute Resolution (ADR) is a voluntary, informal process in which an impartial HMRC mediator actively assists parties to work towards agreement of a tax dispute.
ADR is one facet of HMRC’s overall approach to dispute resolution, which is wherever possible to reach agreement with taxpayers through collaboration. The following is specific information relating to the ADR function only and therefore only forms part of the dispute resolution landscape in HMRC. HMRC do not currently offer arbitration as a means to resolve disputes.
For the period 1 April 2015 – 31 March 2020, there have been 5467 applications for ADR. Of these, 2,641 were suitable for mediation and accepted into the ADR process with an average resolution rate of 86.8% across all years.
Throughout a compliance check HMRC will provide accurate, consistent and clear information to the taxpayer, including details of any assessments raised and explanations for any decisions HMRC make during the check. Should a taxpayer have any questions about the compliance check or an assessment, they should write to HMRC who will seek to clarify anything that is unclear. However, HMRC’s approach also relies on a shared understanding of the full facts so that HMRC can understand the full nature of the tax risk and deal with it appropriately.
It is generally only when an impasse is reached between HMRC and the taxpayer that Alternative Dispute Resolution (ADR) is considered. In some cases the full facts will have been established and the mediation will focus on the consequent tax analysis. But in some, the value of ADR will be to seek through mediation, a shared understanding of the facts and help the case progress on that basis.
Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations he has received on failures by HMRC to abide by the HMRC Litigation and Settlement Strategy when dealing with taxpayers; and what plans he has to introduce a statutory code or framework for HMRC's officers.
Answered by Jesse Norman
HMRC and HMT Ministers receive representations on a wide range of matters. However, there have not been any formal representations regarding failures by HMRC to abide by the HMRC Litigation and Settlement Strategy when dealing with taxpayers.
A Statutory Framework already underpins HMRC, under which are various other commitments that ensure HMRC are open and transparent in the way officers conduct themselves. The Commissioners of HMRC have ultimate responsibility for every decision made in HMRC, although officers make day-to-day decisions on their behalf within an overall governance framework established when the department was formed. These governance processes are in place to ensure that HMRC deal with all cases fairly and in an even-handed manner.
The Tax Assurance Commissioner (TAC) is responsible for ensuring that HMRC have appropriate governance arrangements in place to meet those objectives and reports back to Parliament on an annual basis, in a report that is published. The latest report was published on 5 November 2020 as part of HMRC's Annual Report and Accounts 2019 to 2020.
HMRC are also developing one set of Professional Standards for civil compliance, the development of which was closely aligned to the work on revising HMRC’s Charter. The Charter is a legal requirement and the Legislation states the Charter “must include standards of behaviour and values to which Her Majesty's Revenue and Customs will aspire when dealing with people in the exercise of their functions”. HMRC published a new Charter on 5 November 2020 after taking on feedback from a public consultation which ran between February and August 2020. The new Charter sets out responsibilities towards all of HMRC’s customers, and it also includes surrounding guidance on GOV.UK which sets out rights to review and appeal.
Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether prior to entering into HMRC’s Alternative Dispute Resolution scheme, HMRC’s officers provide their tax analysis to the taxpayer and answer questions that may arise from that analysis, to ensure that the parties enter into mediation.
Answered by Jesse Norman
Alternative Dispute Resolution (ADR) is a voluntary, informal process in which an impartial HMRC mediator actively assists parties to work towards agreement of a tax dispute.
ADR is one facet of HMRC’s overall approach to dispute resolution, which is wherever possible to reach agreement with taxpayers through collaboration. The following is specific information relating to the ADR function only and therefore only forms part of the dispute resolution landscape in HMRC. HMRC do not currently offer arbitration as a means to resolve disputes.
For the period 1 April 2015 – 31 March 2020, there have been 5467 applications for ADR. Of these, 2,641 were suitable for mediation and accepted into the ADR process with an average resolution rate of 86.8% across all years.
Throughout a compliance check HMRC will provide accurate, consistent and clear information to the taxpayer, including details of any assessments raised and explanations for any decisions HMRC make during the check. Should a taxpayer have any questions about the compliance check or an assessment, they should write to HMRC who will seek to clarify anything that is unclear. However, HMRC’s approach also relies on a shared understanding of the full facts so that HMRC can understand the full nature of the tax risk and deal with it appropriately.
It is generally only when an impasse is reached between HMRC and the taxpayer that Alternative Dispute Resolution (ADR) is considered. In some cases the full facts will have been established and the mediation will focus on the consequent tax analysis. But in some, the value of ADR will be to seek through mediation, a shared understanding of the facts and help the case progress on that basis.
Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to give the Financial Conduct Authority responsibility for (a) tracking changes in cash acceptance by UK businesses and (b) evaluating the effect of cash refusal on consumers.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains important to millions of people across the UK, which is why it has committed to legislate to protect access to cash and to ensure that the UK’s cash infrastructure is sustainable in the long term. The Government is working at pace, engaging with industry and the regulators – the Financial Conduct Authority, Payment Systems Regulator, and Bank of England – whilst designing legislation.
To inform the development of this legislation, the Government published a Call for Evidence on 15 October seeking views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. As set out in the Call for Evidence, the Government considers that there may be benefit in giving a single authority overall responsibility for setting requirements to ensure that the retail distribution of cash meets the needs of consumers and businesses. The government’s view is that the FCA may be well positioned to take on the function through legislation.
The Government also remains closely engaged with the financial regulators, including through the Treasury-chaired Joint Authorities Cash Strategy Group, to monitor and assess risks around cash relating to COVID-19. In order to help control the virus, all businesses and individuals are encouraged to follow the latest Government advice. To work safely, retailers have been recommended to minimise contact around transactions, for example, considering using contactless payments. It remains the individual retailer’s choice as to whether to accept or decline any form of payment, including cash or card.
Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of trends in people's ability to pay for goods and services using cash during the covid-19 outbreak; and what steps the Government is taking to mitigate the risk of widespread cash refusal.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains important to millions of people across the UK, which is why it has committed to legislate to protect access to cash and to ensure that the UK’s cash infrastructure is sustainable in the long term. The Government is working at pace, engaging with industry and the regulators – the Financial Conduct Authority, Payment Systems Regulator, and Bank of England – whilst designing legislation.
To inform the development of this legislation, the Government published a Call for Evidence on 15 October seeking views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. As set out in the Call for Evidence, the Government considers that there may be benefit in giving a single authority overall responsibility for setting requirements to ensure that the retail distribution of cash meets the needs of consumers and businesses. The government’s view is that the FCA may be well positioned to take on the function through legislation.
The Government also remains closely engaged with the financial regulators, including through the Treasury-chaired Joint Authorities Cash Strategy Group, to monitor and assess risks around cash relating to COVID-19. In order to help control the virus, all businesses and individuals are encouraged to follow the latest Government advice. To work safely, retailers have been recommended to minimise contact around transactions, for example, considering using contactless payments. It remains the individual retailer’s choice as to whether to accept or decline any form of payment, including cash or card.
Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his Department's consultation on protecting access to cash, what assessment he has made of the potential merits of giving the Financial Conduct Authority (FCA) overall responsibility for maintaining a well-functioning cash system; and what discussions his Department has had with the FCA on them taking on that role.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains important to millions of people across the UK, which is why it has committed to legislate to protect access to cash and to ensure that the UK’s cash infrastructure is sustainable in the long term. The Government is working at pace, engaging with industry and the regulators – the Financial Conduct Authority, Payment Systems Regulator, and Bank of England – whilst designing legislation.
To inform the development of this legislation, the Government published a Call for Evidence on 15 October seeking views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. As set out in the Call for Evidence, the Government considers that there may be benefit in giving a single authority overall responsibility for setting requirements to ensure that the retail distribution of cash meets the needs of consumers and businesses. The government’s view is that the FCA may be well positioned to take on the function through legislation.
The Government also remains closely engaged with the financial regulators, including through the Treasury-chaired Joint Authorities Cash Strategy Group, to monitor and assess risks around cash relating to COVID-19. In order to help control the virus, all businesses and individuals are encouraged to follow the latest Government advice. To work safely, retailers have been recommended to minimise contact around transactions, for example, considering using contactless payments. It remains the individual retailer’s choice as to whether to accept or decline any form of payment, including cash or card.
Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with the (a) Financial Conduct Authority, (b) Payment Systems Regulator and (c) industry stakeholders on a minimum service guarantee for cash; and what the timetable is for bringing forward legislative proposals on protecting access to cash.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains important to millions of people across the UK, which is why it has committed to legislate to protect access to cash and to ensure that the UK’s cash infrastructure is sustainable in the long term. The Government is working at pace, engaging with industry and the regulators – the Financial Conduct Authority, Payment Systems Regulator, and Bank of England – whilst designing legislation.
To inform the development of this legislation, the Government published a Call for Evidence on 15 October seeking views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. As set out in the Call for Evidence, the Government considers that there may be benefit in giving a single authority overall responsibility for setting requirements to ensure that the retail distribution of cash meets the needs of consumers and businesses. The government’s view is that the FCA may be well positioned to take on the function through legislation.
The Government also remains closely engaged with the financial regulators, including through the Treasury-chaired Joint Authorities Cash Strategy Group, to monitor and assess risks around cash relating to COVID-19. In order to help control the virus, all businesses and individuals are encouraged to follow the latest Government advice. To work safely, retailers have been recommended to minimise contact around transactions, for example, considering using contactless payments. It remains the individual retailer’s choice as to whether to accept or decline any form of payment, including cash or card.
Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has instructed Pool Reinsurance Company Limited to discuss with representatives of the insurance industry the matter of insurance for live events during the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is working closely with the insurers, the trade bodies and regulators to understand what more the sector can do to support firms in response to this pandemic. We also continue to gather and monitor information on how different sectors are being affected by the current crisis and the availability of cover.
We would not typically recommend drawing parallels with existing Government-backed insurance schemes given the specific design of any intervention is dependent on the size, frequency and nature of the risk being insured. Further, the Government would need to assess access to insurance alongside any other barriers to a sector re-opening, such as social distancing restrictions, when determining the appropriate course of action.
Event providers are eligible for assistance through the wider Government support package if they are in financial difficulty. We continue to keep the package under close review.
Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what information his Department holds on what assessment Pool Reinsurance Company Limited has made of the challenges facing live events insurers during the covid-19 outbreak; and what recommendations that company has made to his Department as a result of that assessment.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is working closely with the insurers, the trade bodies and regulators to understand what more the sector can do to support firms in response to this pandemic. We also continue to gather and monitor information on how different sectors are being affected by the current crisis and the availability of cover.
We would not typically recommend drawing parallels with existing Government-backed insurance schemes given the specific design of any intervention is dependent on the size, frequency and nature of the risk being insured. Further, the Government would need to assess access to insurance alongside any other barriers to a sector re-opening, such as social distancing restrictions, when determining the appropriate course of action.
Event providers are eligible for assistance through the wider Government support package if they are in financial difficulty. We continue to keep the package under close review.