Oral Answers to Questions

Jamie Stone Excerpts

Tuesday 2nd July 2019 Commons Chamber

[Sir Oliver Heald (North East Hertfordshire) (Con)]

6. What estimate the Government have made of the number of promoters of loan schemes subject to the 2019 loan charge who have been convicted; and if he will make a statement.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

10. What assessment he has made of the effect of the 2019 loan charge on people working in the (a) public and (b) private sector.

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

The loan charge tackles so-called disguised remuneration arrangements, which use loans to avoid tax. It applies in the same way to people in the public and the private sectors. A tax information and impact note published in 2016 and a report on disguised remuneration published in March 2019 both considered the impacts.

[Jesse Norman]

My right hon. and learned Friend is absolutely right and HMRC will continue to take firm action against those who promote tax avoidance schemes. As he will know, and I think has been made public, it currently has more than 100 promoters under civil inquiry. It is important to be clear that although there are no criminal offences of promoting or marketing tax avoidance schemes specifically, HMRC may conduct criminal investigations and make referrals to prosecuting authorities where, for example, there is evidence that promoters have deliberately misrepresented the facts to it.

[Jamie Stone]

Perfectly innocent working people are caught in a terrible trap here and there have already been several suicides. HMRC said that

“teams are trained to identify customers who are anxious, worried or need extra support to ensure they get the help they need.”

Will the Minister confirm whether those people have had that training? Will a dedicated helpline be set up to help people who are under huge stress?

[Jesse Norman]

The hon. Gentleman is right that there is stress, but he should also be clear that a large number of people have been systematically using those means to avoid paying tax, and the potential amount payable is more than £3 billion. He should be protective of the tax base more widely when he reflects on those matters. He is right that HMRC is taking careful steps to ensure that it protects and supports those who may be in genuine difficulty, and those who have other personal concerns can of course be referred to outside agencies.