Asked by: James Murray (Labour (Co-op) - Ealing North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the (a) number of (i) payroll software developers and (ii) employers that will be unable to change their systems in time to implement changes to national insurance contributions coming into effect on 6 January 2024 and (b) number of employees who will be affected as a result.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Following the Autumn Statement 2023 announcement of changes to National Insurance contributions (NICs), HMRC are working closely with software developers and employers to ensure they have a clear understanding of the changes and to ensure HMRC is doing everything necessary to facilitate delivery of those changes, including engaging regularly with the industry. Technical specifications were provided at pace following the announcement, and HMRC’s engagement with the industry to date has indicated that the majority of payroll software developers and employers will be able to make the changes on time. HMRC will continue to engage with the industry to monitor the progress being made to implement the changes, and any implications for the volume of customer refunds.
HMRC provided its assessment of the impacts of the changes on businesses via a Tax Information and Impact Note published alongside the National Insurance Contributions (Reduction in Rates) Bill. This is available on GOV.UK.
HMRC is confident that its own Basic PAYE Tools (for use by employers with 9 or less employees) will be updated in time, and the updated product is expected to be available to download via gov.uk by 6th January 2024.
Asked by: James Murray (Labour (Co-op) - Ealing North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the capacity of employers to implement the changes to national insurance contributions coming into effect on 6 January 2024.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Following the Autumn Statement 2023 announcement of changes to National Insurance contributions (NICs), HMRC are working closely with software developers and employers to ensure they have a clear understanding of the changes and to ensure HMRC is doing everything necessary to facilitate delivery of those changes, including engaging regularly with the industry. Technical specifications were provided at pace following the announcement, and HMRC’s engagement with the industry to date has indicated that the majority of payroll software developers and employers will be able to make the changes on time. HMRC will continue to engage with the industry to monitor the progress being made to implement the changes, and any implications for the volume of customer refunds.
HMRC provided its assessment of the impacts of the changes on businesses via a Tax Information and Impact Note published alongside the National Insurance Contributions (Reduction in Rates) Bill. This is available on GOV.UK.
HMRC is confident that its own Basic PAYE Tools (for use by employers with 9 or less employees) will be updated in time, and the updated product is expected to be available to download via gov.uk by 6th January 2024.
Asked by: James Murray (Labour (Co-op) - Ealing North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Answer of 12 December 2023 to Questions 5901, 5897 and 5898, on what evidential basis his Department determined that an average worker in 2024-25 will pay more than £1,000 less in personal taxes than they otherwise would have done; and if he will publish those calculations.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The calculations underlying this statistic are based on public information, including a published estimate of average earnings. They are robust and could be replicate by an external analyst.
Further details are provided in my answer of 12 December to PQ UIN 5898.
Asked by: James Murray (Labour (Co-op) - Ealing North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contributions of the Chief Secretary to the Treasury of 22 November 2023, Official Report, column 360, and 30 November 2023, Official Report, column 1087, what calculations his Department has used to estimate that taxes for the average worker will have reduced by £1,000 since 2010.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Thanks to the cut to employee National Insurance contributions (NICs) announced at the Autumn Statement and to above-inflation increases to starting thresholds since 2010, an average worker in 24-25 will pay over £1,000 less in personal taxes than they otherwise would have done.
The calculations underlying this statistic are based on public information, including a published estimate of average earnings. They are robust and could be replicated by an external analyst.
The calculations are on a same-year basis against a counterfactual, to isolate the effect of policy changes on tax liabilities. Comparisons over time would include the effects of earnings growth on cash totals of tax due, given the progressive personal tax system. It is straightforward to calculate how much the average worker paid in personal taxes in each financial year since 2010-11 using published information.
Asked by: James Murray (Labour (Co-op) - Ealing North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Autumn Statement 2023: National Insurance Factsheet, published on 22 November 2023, how his Department calculated that an average worker will pay over £1,000 less in personal taxes than they otherwise would have done in 2024-25.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Thanks to the cut to employee National Insurance contributions (NICs) announced at the Autumn Statement and to above-inflation increases to starting thresholds since 2010, an average worker in 24-25 will pay over £1,000 less in personal taxes than they otherwise would have done.
The calculations underlying this statistic are based on public information, including a published estimate of average earnings. They are robust and could be replicated by an external analyst.
The calculations are on a same-year basis against a counterfactual, to isolate the effect of policy changes on tax liabilities. Comparisons over time would include the effects of earnings growth on cash totals of tax due, given the progressive personal tax system. It is straightforward to calculate how much the average worker paid in personal taxes in each financial year since 2010-11 using published information.
Asked by: James Murray (Labour (Co-op) - Ealing North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much the average worker paid in personal taxes in each financial year since 2010-11.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Thanks to the cut to employee National Insurance contributions (NICs) announced at the Autumn Statement and to above-inflation increases to starting thresholds since 2010, an average worker in 24-25 will pay over £1,000 less in personal taxes than they otherwise would have done.
The calculations underlying this statistic are based on public information, including a published estimate of average earnings. They are robust and could be replicated by an external analyst.
The calculations are on a same-year basis against a counterfactual, to isolate the effect of policy changes on tax liabilities. Comparisons over time would include the effects of earnings growth on cash totals of tax due, given the progressive personal tax system. It is straightforward to calculate how much the average worker paid in personal taxes in each financial year since 2010-11 using published information.
Asked by: James Murray (Labour (Co-op) - Ealing North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC has made payments (a) directly or (b) indirectly for the benefit of any individuals who were a designated person for the purposes of financial sanctions regulations in each of the last 10 years.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC withholds repayments to designated persons and entities that are owned or controlled by those subject to financial sanctions that have a UK tax footprint.
HMRC has reviewed its position following the changes in sanctions legislation following the UK leaving the EU and is confident that no persons or entities on the UK sanctions list has received payment from HMRC, except where provided for by an appropriate licence in accordance with UK sanctions policy.
HMRC has robust processes in place to identify designated persons and entities owned or controlled by designated persons, and banking controls put in place by HMRC's banks also provide a further level of protection.
Asked by: James Murray (Labour (Co-op) - Ealing North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 22 March 2023 to Question 165453 on Taxation: Fines, how many of the individual penalties issued by HM Revenue and Customs which are recorded on the National Penalty Processing System for offshore Failure to Correct penalties amounted to the individual monetary value of £1,000 to £9,999 in each of the last five years.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
I refer the Honourable Member to the answer I gave to Parliamentary Question UIN 182714 on 4th May 2023.
Asked by: James Murray (Labour (Co-op) - Ealing North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 22 March 2023 to Question 165453 on Taxation: Fines, how many individual penalties issued by HM Revenue and Customs which are recorded on the National Penalty Processing System for Offshore Penalty: Failure to Correct amounted to the individual monetary value of £100,000 to £999,999 in each of the last five years.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
I refer the Honourable Member to the answer I gave to Parliamentary Question UIN 182714 on 4th May 2023.
Asked by: James Murray (Labour (Co-op) - Ealing North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 22 March 2023 to Question 165453 on Taxation: Fines, how many of the individual penalties issued by HM Revenue and Customs which are recorded on the National Penalty Processing System for offshore Failure to Correct penalties amounted to a monetary value of £10,000 to £99,999 in each of the last five years.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
I refer the Honourable Member to the answer I gave to Parliamentary Question UIN 182714 on 4th May 2023.