Asked by: Esther McVey (Conservative - Tatton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the (a) effectiveness of the processes put in place by HMRC to register private schools for VAT and (b) adequacy of the time taken for those schools to receive a VAT number.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government is committed to supporting private schools to ensure that the VAT registration process is as smooth as possible for them, and to ensuring they have the necessary support in order to be able to correctly charge VAT and remit it to HMRC.
HMRC has put in place additional resource to process VAT registrations and, on 10 October, published bespoke guidance for schools, which can be found on GOV.UK. HMRC published initial guidance ahead of the Budget to maximise the amount of time schools had to prepare for this policy taking effect.
Currently more than 80% of VAT registration applications are being processed within 20 working days, exceeding HMRC’s published service standard of 80% within 40 working days
HMRC has also hosted online webinars to answer any queries that schools may have and can be contacted via a dedicated mailbox in the event of any technical queries about registering.
Asked by: Esther McVey (Conservative - Tatton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of private schools have been provided with a VAT number.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC publishes data on the VAT population by sector on an annual basis. The latest statistics can be found here: Value Added Tax (VAT) annual statistics - GOV.UK
The point at which private schools need to register for VAT depends on their individual circumstances and fee schedules. A significant number were registered for VAT before the announcement that, from 1 January 2025, all education and boarding services provided by a private school or connected person will be subject to VAT at the standard rate of 20%.
HMRC is also supporting schools through the registration process via webinars, its helpline and a dedicated technical query mailbox which can be used by schools, their representative bodies and tax advisors.
Asked by: Esther McVey (Conservative - Tatton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of private schools have been provided with a VAT number.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC publishes data on the VAT population by sector on an annual basis. The latest statistics can be found here: Value Added Tax (VAT) annual statistics - GOV.UK
The point at which private schools need to register for VAT depends on their individual circumstances and fee schedules. A significant number were registered for VAT before the announcement that, from 1 January 2025, all education and boarding services provided by a private school or connected person will be subject to VAT at the standard rate of 20%.
HMRC is also supporting schools through the registration process via webinars, its helpline and a dedicated technical query mailbox which can be used by schools, their representative bodies and tax advisors.
Asked by: Esther McVey (Conservative - Tatton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what businesses have made representations to her about the Autumn Budget 2024.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
Ahead of the Autumn Budget, the Treasury received 633 written representations from stakeholders. Ministers and officials also met with a broad range of businesses and representative bodies. This includes meetings that the Chancellor and Financial Secretary had with Heads of the Federation of Small Businesses, Confederation of British Industry, Institute of Directors, British Chambers of Commerce and Make UK.
Asked by: Esther McVey (Conservative - Tatton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of court cases has HMRC won in each of the last five years.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
HMRC publishes its litigation outcomes every year within it’s Annual Report. The latest report for 2022-2023 together with links to previous years’ reports can be found at:
www.gov.uk/government/publications/hmrc-annual-report-and-accounts-2022-to-2023
Asked by: Esther McVey (Conservative - Tatton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, What estimate his Department has made of the average cost to businesses of successfully defending a court case brought by HMRC in each of the last five years.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
HMRC does not estimate or collect customer data on the costs incurred by businesses who seek to contest an assessment through the courts.More detail of the department’s litigation strategy can be found on GOV.UK at www.gov.uk/government/publications/litigation-and-settlement-strategy-lss
Asked by: Esther McVey (Conservative - Tatton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the effectiveness of the legislative framework governing HMRC's enforcement of the Loan Charge against (a) employees and (b) employers.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Chancellor of the Exchequer has not had any recent discussions nor made any recent assessment as referenced in these questions.
The charge on disguised remuneration loans (the Loan Charge) was legislated in Finance (No.2) Act 2017. Changes to the Loan Charge were enacted in Finance Act 2020 in line with the accepted recommendations made in Lord Morse’s Independent Loan Charge Review.
HMRC published their report to Parliament on GOV.UK in December 2020. This covers the implementation of changes to the Loan Charge and next steps for affected taxpayers, including individuals and employers.
At Budget 2021, the Government committed to invest further in HMRC to fund compliance work on the Loan Charge, historic disguised remuneration cases and early intervention to encourage individuals to exit tax avoidance schemes. HMRC will continue to monitor compliance with the Loan Charge.
Asked by: Esther McVey (Conservative - Tatton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to HMRC's Freedom of Information Team's response to FOI request (FOI2021/00393) and the email of 31 January 2019 from HMRC's First Permanent Secretary and Chief Executive within that FOI response, what recent discussions he has had with relevant stakeholders on the effectiveness of the legislative framework governing HMRC's enforcement of the Loan Charge against (a) employees and (b) employers.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Chancellor of the Exchequer has not had any recent discussions nor made any recent assessment as referenced in these questions.
The charge on disguised remuneration loans (the Loan Charge) was legislated in Finance (No.2) Act 2017. Changes to the Loan Charge were enacted in Finance Act 2020 in line with the accepted recommendations made in Lord Morse’s Independent Loan Charge Review.
HMRC published their report to Parliament on GOV.UK in December 2020. This covers the implementation of changes to the Loan Charge and next steps for affected taxpayers, including individuals and employers.
At Budget 2021, the Government committed to invest further in HMRC to fund compliance work on the Loan Charge, historic disguised remuneration cases and early intervention to encourage individuals to exit tax avoidance schemes. HMRC will continue to monitor compliance with the Loan Charge.
Asked by: Esther McVey (Conservative - Tatton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Centre for Economics and Business Research report, How covid-driven digital change could transform the UK economy, if his Department will make an assessment of the potential merits of exempting full fibre deployment from business rates tax to help meet the Government's 2025 target for fibre broadband.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government notes the CEBR report, commissioned by Openreach, which predicts a huge productivity boost from nationwide gigabit connectivity, suggesting a £59 billion boost to the UK’s Gross Value Added (GVA) by 2025. On the report’s suggestion that 270,000 people could move from urban to more rural areas as a result of changing attitudes towards home working, the Government recognises the importance of strong digital connectivity in rural areas. That is why it is investing £5bn to ensure those living in hard-to-reach areas get gigabit connectivity.
The Government is providing 100 per cent business rates relief for new full-fibre infrastructure for a five-year period from 1 April 2017. Telecoms providers are also significant beneficiaries of the £3.6 billion transitional relief scheme. A fundamental review of business rates was announced by the Chancellor at last year’s Budget. A call for evidence was published in July 2020 to seek stakeholders’ views on all elements of the business rates system including reliefs, and the Government is currently considering its responses. The final report will be published in the Autumn.
Asked by: Esther McVey (Conservative - Tatton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many (a) promoters and (b) operators of schemes now subject to the Loan Charge have been prosecuted.
Answered by Jesse Norman - Shadow Leader of the House of Commons
I refer the Right Honourable Member to the answer given on 29 April 2021 to UIN 187240.