Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the average Alcohol By Volume is of each product produced by (a) small brewers and (b) small cider producers.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government will introduce a new Small Producer Relief, building on the success of Small Brewers Relief, for cidermakers and other producers of lower alcohol by volume (ABV) drinks, to encourage innovation and remove barriers to growth for small producers.
Small brewers and cidermakers produce at a range of ABVs. The strength of the products of small producers will vary according to their individual business model.
Small cidermakers producing 70 hectolitres or less in a 12-month consecutive period are exempted from the requirement to register with HMRC for duty purposes. The Government therefore holds no records on the numbers of these businesses.
Under the proposals published at Budget, brewers that also produce spirits will be required to attribute spirits production to their total production amount.
We will be publishing the Government’s response to the consultation on the alcohol duty review, including Small Producer’s Relief, later in the year.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the (a) number and (b) percentage of cider producers that qualify for the small cidermakers exemption.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government will introduce a new Small Producer Relief, building on the success of Small Brewers Relief, for cidermakers and other producers of lower alcohol by volume (ABV) drinks, to encourage innovation and remove barriers to growth for small producers.
Small brewers and cidermakers produce at a range of ABVs. The strength of the products of small producers will vary according to their individual business model.
Small cidermakers producing 70 hectolitres or less in a 12-month consecutive period are exempted from the requirement to register with HMRC for duty purposes. The Government therefore holds no records on the numbers of these businesses.
Under the proposals published at Budget, brewers that also produce spirits will be required to attribute spirits production to their total production amount.
We will be publishing the Government’s response to the consultation on the alcohol duty review, including Small Producer’s Relief, later in the year.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the new small producer relief on small brewers that also produce spirits above 8.5% ABV.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government will introduce a new Small Producer Relief, building on the success of Small Brewers Relief, for cidermakers and other producers of lower alcohol by volume (ABV) drinks, to encourage innovation and remove barriers to growth for small producers.
Small brewers and cidermakers produce at a range of ABVs. The strength of the products of small producers will vary according to their individual business model.
Small cidermakers producing 70 hectolitres or less in a 12-month consecutive period are exempted from the requirement to register with HMRC for duty purposes. The Government therefore holds no records on the numbers of these businesses.
Under the proposals published at Budget, brewers that also produce spirits will be required to attribute spirits production to their total production amount.
We will be publishing the Government’s response to the consultation on the alcohol duty review, including Small Producer’s Relief, later in the year.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many small producers that produce multiple alcoholic products will be effected by the introduction of small producer relief.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government intends to introduce a new Small Producers Relief to replace the existing Small Brewers Relief. The new relief will include beer, cider, wine and spirits-based drinks below 8.5% alcohol by volume (ABV). It aims to encourage innovation and remove barriers growth for small producers.
This change will benefit hundreds of small producers across the UK by giving them access to reduce rates for the first time, across a wider range of products.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the effectiveness of the obligations on employment agencies and umbrella companies under Schedule 44, Section 2 of The Income Tax (Earnings and Pensions) Act 2003.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
Most agency workers must be treated as employees for Income Tax and National Insurance contributions (NICs) purposes by the agencies that pay them. These agencies are required to make deductions of Income Tax and employee NICs, where these are due, from the workers’ pay in the same way and at the same level as with direct employees. The agencies will also be liable to pay employer NICs, where these are due, in respect of payments to the workers.
The rules for agencies do not apply to umbrella companies, which engage workers under a contract of employment. Like all employers, umbrella companies are responsible for making deductions of Income Tax and employee NICs from their employees’ pay and for paying employer NICs where they are due.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what legal advice his Department received that supports HMRC pursuing employees not employers for the use of loan schemes.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Loan Charge was announced at Budget 2016 as part of a package of measures to tackle Disguised Remuneration (DR) tax avoidance. The forecast was last revised at Spring Budget 2021. There was an estimated overall Exchequer yield of £3.3 billion for the entire package, including the Loan Charge.
In September 2019, the Government commissioned an Independent Review into the Loan Charge which was led by Lord Morse. The Government accepted 19 of the 20 recommendations made by the review. Changes to the Loan Charge were estimated to reduce the forecast yield. At Budget 2020, the changes were costed as a separate measure, with an estimated reduction to the Exchequer yield of £745 million.
HMRC will go to the employer to settle the tax due or collect the Loan Charge in the first instance. Approximately 80 per cent of the £3.3 billion HMRC brought into charge through DR settlements between Budget 2016 and the end of March 2021 was from employers.
However, HMRC will consider other options to collect the tax when collection from the employer is not possible, such as when the employer no longer exists or is based offshore. Liability for the tax is always that of the individual, and the requirement for an employer to account for PAYE does not supersede or remove this liability. Parliament has provided a range of powers allowing HMRC, in certain circumstances, to collect the amount due from the employee.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the total amount of revenue that will be raised by the loan charge.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Loan Charge was announced at Budget 2016 as part of a package of measures to tackle Disguised Remuneration (DR) tax avoidance. The forecast was last revised at Spring Budget 2021. There was an estimated overall Exchequer yield of £3.3 billion for the entire package, including the Loan Charge.
In September 2019, the Government commissioned an Independent Review into the Loan Charge which was led by Lord Morse. The Government accepted 19 of the 20 recommendations made by the review. Changes to the Loan Charge were estimated to reduce the forecast yield. At Budget 2020, the changes were costed as a separate measure, with an estimated reduction to the Exchequer yield of £745 million.
HMRC will go to the employer to settle the tax due or collect the Loan Charge in the first instance. Approximately 80 per cent of the £3.3 billion HMRC brought into charge through DR settlements between Budget 2016 and the end of March 2021 was from employers.
However, HMRC will consider other options to collect the tax when collection from the employer is not possible, such as when the employer no longer exists or is based offshore. Liability for the tax is always that of the individual, and the requirement for an employer to account for PAYE does not supersede or remove this liability. Parliament has provided a range of powers allowing HMRC, in certain circumstances, to collect the amount due from the employee.