Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether independent education settings for people over the age of 19 will be VAT-exempt.
Answered by James Murray - Exchequer Secretary (HM Treasury)
As set out in our manifesto and confirmed in the Chancellor’s July statement, we are ending the VAT break for private schools. The government will introduce 20% VAT on education and boarding services provided for a charge from 1 January 2025.
As per the draft VAT legislation that was published in July, the new VAT charge will apply to education and vocational training provided either at sixth forms attached to private schools or standalone private sixth form colleges. However, education and vocational training provided by further education colleges, which are classified as public sector institutions, will not be subject to VAT. The Government will confirm the final policy design at the Budget.
Support is available to all educational institutions to help them understand any new tax liabilities that result from these changes; alongside existing support for businesses, bespoke HMRC guidance is available online and this will be complemented with webinars intended to talk schools through the steps they will need to take to comply with any new tax liabilities.
The change will not impact pupils with the most acute additional needs, where these can only be met in private schools. Where pupils’ places in private schools are being funded by local authorities (LAs) because their needs can only be met in private school (e.g. in England, where attendance at that private school is required by a child’s Education, Health and Care Plan (EHCP)), LAs will be able to reclaim the VAT so it does not apply to those fees.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether independent school fees for people over the age of 18 who are (a) in education and (b) have an Education Health and Care Plan will by exempt from VAT.
Answered by James Murray - Exchequer Secretary (HM Treasury)
As set out in our manifesto and confirmed in the Chancellor’s July statement, we are ending the VAT break for private schools. The government will introduce 20% VAT on education and boarding services provided for a charge from 1 January 2025.
As per the draft VAT legislation that was published in July, the new VAT charge will apply to education and vocational training provided either at sixth forms attached to private schools or standalone private sixth form colleges. However, education and vocational training provided by further education colleges, which are classified as public sector institutions, will not be subject to VAT. The Government will confirm the final policy design at the Budget.
Support is available to all educational institutions to help them understand any new tax liabilities that result from these changes; alongside existing support for businesses, bespoke HMRC guidance is available online and this will be complemented with webinars intended to talk schools through the steps they will need to take to comply with any new tax liabilities.
The change will not impact pupils with the most acute additional needs, where these can only be met in private schools. Where pupils’ places in private schools are being funded by local authorities (LAs) because their needs can only be met in private school (e.g. in England, where attendance at that private school is required by a child’s Education, Health and Care Plan (EHCP)), LAs will be able to reclaim the VAT so it does not apply to those fees.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what information her Department holds on how much debt relief Chad has received from external private creditors through the G20 Common Framework for Debt Treatments.
Answered by Darren Jones - Chief Secretary to the Treasury
Chad agreed a debt treatment with its official bilateral creditors and its main private creditor, Glencore, in November 2022.
According to the International Monetary Fund (IMF), the treatment is consistent with the commitments made by Chad and parameters under its IMF-supported program. This is enabling Chad to restore its debt sustainability, while ensuring protection against the volatility of oil prices through contingent treatment mechanisms.
The UK is not a creditor to Chad.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to promote the workplace nursery scheme; and how much has been spent promoting that scheme in each financial year since it was introduced.
Answered by Laura Trott - Shadow Secretary of State for Education
Workplace Nurseries formed part of Employer Supported Childcare (ESC), which closed for new applicants from 4 October 2018.
Employees already registered before 4th October 2018 are able to continue using the scheme for as long as the employer offers it, or as long as they stay with the employer.
ESC was replaced by Tax-Free Childcare in October 2018.
The Government continues to support parents with childcare, including through Tax-Free Childcare, the free hours childcare offer, and Universal Credit Childcare.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the level of usage of the workplace nursery scheme since it was introduced.
Answered by Laura Trott - Shadow Secretary of State for Education
Workplace Nurseries formed part of Employer Supported Childcare (ESC), which closed for new applicants from 4 October 2018.
Employees already registered before 4th October 2018 are able to continue using the scheme for as long as the employer offers it, or as long as they stay with the employer.
ESC was replaced by Tax-Free Childcare in October 2018.
The Government continues to support parents with childcare, including through Tax-Free Childcare, the free hours childcare offer, and Universal Credit Childcare.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the cost to the public purse of HMRC sending (a) paper self-assessment tax returns to people who complete their tax returns online for the 2023-24 financial year and (b) correction letters to those people.
Answered by Nigel Huddleston
HMRC are aware that some customers who normally file their Self Assessment (SA) tax returns online have received a paper SA. These were sent in error, and customers who were expecting to file online should continue to do so. HMRC have written to everyone affected to apologise for the confusion and to reassure them that they do not need to take any action other than to file their return, which they can still do online, by the 31st January 2025.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many paper self-assessment tax returns were erroneously dispatched by HMRC to people who normally complete their self-assessment tax returns online in financial year 2023-24.
Answered by Nigel Huddleston
HMRC are aware that some customers who normally file their Self Assessment (SA) tax returns online have received a paper SA. These were sent in error, and customers who were expecting to file online should continue to do so. HMRC have written to everyone affected to apologise for the confusion and to reassure them that they do not need to take any action other than to file their return, which they can still do online, by the 31st January 2025.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to update to the List of named tax avoidance schemes, promoters, enables and suppliers of 1 December 2023, what recent assessment he has made of the potential impact of changes to the loan charge that came into effect on 5 April 2019 on the financial wellbeing of freelancers.
Answered by Nigel Huddleston
The Loan Charge was independently reviewed by Lord Morse, who considered the impacts of the policy on individuals. The Government accepted 19 of his 20 recommendations. These changes, such as removing loans made before 9 December 2010 from the scope of the Loan Charge, reduced the impact of the policy and removed aspects which were of wider concern.HMRC puts support for those affected at the core of its work to collect the Loan Charge and bring cases to settlement.
HMRC can agree an affordable and sustainable instalment plan based on taxpayers’ specific circumstances and for as long as they need. HMRC can also refer taxpayers for free debt advice that is independent from HMRC.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of zero-rating for VAT school uniforms designed for children aged 14 or over.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Under the current VAT rules, all children’s clothing and footwear designed for young children who are less than 14 years of age, including school uniforms, attract a zero-rate of VAT, meaning that no VAT is charged on the sale of these items.
In addition, certain school uniform items may also benefit from a zero rate of VAT irrespective of size. For instance, garments which bear a prominent logo, crest or badge identifying them as part of the official uniform of schools catering exclusively for children under 14 years of age can be zero-rated.
The UK is one of only two countries among the 37 OECD member countries to maintain a VAT relief for children’s clothing, which costs the Exchequer £2 billion per year.
Going further would impose additional pressure on the public finances, to which VAT makes a significant contribution. Whilst we have no current plans to extend the existing zero rate, we nevertheless keep all taxes under review.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the revenue generated by charging VAT on school uniforms designed for children aged 14 or over in each of the last five years.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The requested information on VAT revenues is not available. HMRC does not hold information on VAT revenue from specific products because businesses are not required to provide figures at a product level on their VAT returns, as this would impose an excessive administrative burden.