Asked by: Dean Russell (Conservative - Watford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made f the impact of the level of VAT on the hospitality sector.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Since the start of the pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.
VAT is the UK's third largest tax forecast to raise £161 billion in 2023/2024, helping to fund key spending priorities such as important public services, including the NHS, education and defence. The previous VAT relief for tourism and hospitality cost over £8 billion and reintroducing it would come at a significant further cost.
While there are no plans to reduce the rate of VAT paid by hospitality businesses, the Government keeps all taxes under review.
Asked by: Dean Russell (Conservative - Watford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent comparative assessment his Department has made of the impact of the level of VAT rates on the hospitality sector in (a) the UK and (b) the EU.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Since the start of the pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.
At £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD, which keeps the majority of UK businesses out of VAT. VAT reliefs in the UK are among the highest in the OECD and mean that 45 per cent of economic activity is not subject to VAT.
Asked by: Dean Russell (Conservative - Watford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many promoters and operators of the Loan Charge 2019 have been prosecuted for promoting and operating those schemes.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
I refer the Hon Member to the answer that was given to PQ UIN 62867.
Asked by: Dean Russell (Conservative - Watford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment he has made of the equity of HMRC pursuing employees and not employers on the use of the Loan Charge 2019.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Loan Charge, a new charge on disguised remuneration loan balances outstanding on 5 April 2019, was announced at Budget 2016. This initially gave individuals three years from the announcement of the Loan Charge to either repay their loans or agree a settlement with HMRC.
HMRC will go to the employer to settle the tax due or collect the Loan Charge in the first instance. Approximately 80 per cent of the £3.3 billion HMRC has brought into charge through disguised remuneration settlements between Budget 2016 and the end of March 2021 has been from employers.
However, HMRC will consider other options to collect the tax where collection from the employer is not possible, such as when the employer no longer exists or are based offshore. Liability for the tax is always that of the individual. The Government has provided a range of powers allowing HMRC, in certain circumstances, to collect the amount due from the employee.
Following Lord Morse’s Independent Loan Charge Review, the Government has taken further steps to mitigate the impact of the Loan Charge to ensure that the right support is in place for those who need it.
Asked by: Dean Russell (Conservative - Watford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent steps his Department has taken to ensure that limited companies are not adversely affected by the changes to the off-payroll working rules.
Answered by Jesse Norman
HMRC have a dedicated off-payroll working education and support team to assist taxpayers. Their assistance includes webinars, one-to-one calls and workshops, to help those affected to apply the rules correctly.
The Government has set out its intention to commission independent research into the effects of the reform on the private and voluntary sectors, which will take place six months after the reform has taken effect. This will be presented to Parliament.
Asked by: Dean Russell (Conservative - Watford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that cash continues to be accepted at businesses throughout the UK.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that the ability to transact in cash remains important to millions of people across the UK and has committed to legislating to protect access to cash.
The Government made legislative changes to support the widespread offering of cashback without a purchase by shops and other businesses as part of the Financial Services Act 2021. Furthermore, the Government has announced that it will consult this summer on further legislative proposals for protecting cash for the long term.
However, firms should continue to be able to make decisions over which payments methods they offer their customers on a commercial basis, including cash, cards, and digital payments.
Asked by: Dean Russell (Conservative - Watford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason Revenue and Customs Digital Technology Services Limited (RCDTS Ltd) engaged contractors using disguised remuneration schemes until 2020.
Answered by Jesse Norman
Revenue and Customs Digital Technology Services Limited (RCDTS) has never participated in disguised remuneration tax avoidance schemes, for example by remunerating contractors through loans or payments to trusts. Since RCDTS engages contractors via agencies or via companies providing services, it is possible for contractors to use disguised remuneration without the participation or knowledge of RCDTS.
Any RCDTS contractor identified in the course of HM Revenue and Customs’ compliance work as using a disguised remuneration scheme would be investigated in the same way as any other contractor. Where the use of disguised remuneration is found to be current, the relevant engagement is terminated with immediate effect.