Oral Answers to Questions

Debate between Gareth Bacon and Jesse Norman

Tuesday 1st December 2020 Commons Chamber

[Jesse Norman]

We certainly, of course, share the view that it is important—very important—to protect the low-paid. The purpose of supporting them through the national living wage was precisely in order to raise their incomes, and that increase is worth some £345 a year for a full-time worker. However, it is also important to say that the Government remain fully committed to their longer-term target for the national living wage, which will make an enormous contribution itself towards ending low pay in the UK, and that is before, as I have mentioned, the support we are giving to 2.1 million public sector workers earning less than £24,000 a year.

[Gareth Bacon (Orpington) (Con)]

How many and what proportion of people who have had settlement discussions with HMRC on the loan charge have reached a settlement.

[The Financial Secretary to the Treasury (Jesse Norman)]

About 11,000 employers and individuals settled their use of disguised remuneration schemes between Budget 2016 and 31 March 2020. As I indicated earlier, HMRC is currently preparing a report to Parliament on the implementation of the recommendations of the independent loan charge review, and that is due imminently. The report will include figures up to the 30 September 2020 deadline for taxpayers who settled their use of disguised remuneration tax avoidance schemes.

[Gareth Bacon]

I thank my right hon. Friend for his answer. In circumstances where process failings, errors and delays on the part of HMRC effectively denied people the possibility of settling their claims by 30 September, will he commit to offering an extended settlement period to allow individuals the chance to settle their debts?

[Jesse Norman]

As my hon. Friend will know, the settlement date has already been extended by eight months. That was a very important recognition of the impact of covid and has given individuals the chance to settle their schemes. He should also be aware that we do not merely seek to support those who are settling; we are also taking robust action against promoters and other enablers of tax avoidance schemes.