Oral Answers to Questions

Debate between Laurence Robertson and Mel Stride

Tuesday 21st May 2019 Commons Chamber

[Mel Stride]

The hon. Gentleman makes a very important point, which is that, when it comes to paying the money that is due, HMRC has a duty to be proportionate and to make sure that appropriate arrangements are in place. There is no maximum limit for the time over which repayments can occur—there are often arrangements that come into place that are well in excess of 10 years. HMRC will continue to approach these matters on that basis.

[Mr Laurence Robertson (Tewkesbury) (Con)]

May I also thank the Minister for the way that he is engaging on this issue? Although I certainly do agree that anybody who has tried to avoid tax in this way needs to be held accountable, I do ask whether it is right that HMRC can go back 20 years to reopen accounts that were accepted. If this tax was due then, why did HMRC not obtain that tax then? Why did it not charge it then? Why has it taken it 20 years to get to this point?

[Mel Stride]

I have already dealt with the issue of retrospection. As to why tax may not have been paid at the time that it was due, there are a multitude of reasons for that not least of which is the fact that many taxpayers simply do not volunteer the correct information or they claim that their scheme works when clearly it does not. HMRC has, over many, many years, pursued these various schemes through the courts, including the Supreme Court, and on each occasion, these schemes have been found not to work.

Oral Answers to Questions

Debate between Laurence Robertson and Mel Stride

Tuesday 17th April 2018 Commons Chamber

[Mr Laurence Robertson (Tewkesbury) (Con)]

2. If he will reduce taxes on small businesses.

[The Financial Secretary to the Treasury (Mel Stride)]

I thank my hon. Friend for his question. The Government are bearing down tirelessly on the tax burden on businesses of all sizes, reducing corporation tax from 28% for large companies in 2010 to 19% today, and for small businesses from 21% to 19%. We will go still further, reducing the burden to 17% by 2020. For unincorporated businesses, we are, of course, increasing the personal allowance, in the previous Budget, to £11,850. That will increase further to £12,500 in 2020—further relief to many small businesses.

[Mr Robertson]

I thank the Minister for that encouraging answer. Businesses are, of course, unpaid tax collectors for the Exchequer and the Federation of Small Businesses recently estimated that businesses spend, on average, three working weeks a year on tax compliance. Is there anything further that the Minister can do to reduce that kind of expensive burden on businesses?

[Mel Stride]

I thank my hon. Friend for raising the FSB’s report. I have not only read it, but met the FSB to discuss the report in detail. I highlight to the House two of its important recommendations: one is around better guidance on taxation, and I have tasked officials on that mission within HMRC; and the second is Making Tax Digital, which we are rolling out for VAT-registered companies in 2019. The report states that this

“presents an opportunity to simplify and speed up tax compliance.”