Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure that travel agents are eligible for full refunds for transaction fees in the event that holidays are cancelled as a result of the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government remains committed to helping businesses and workers through the present very difficult time, and has announced unprecedented support, including a range of grant and tax deferral schemes, and £300 billion of guarantees, equivalent to 15 per cent of UK GDP.
The terms on which transaction fees for card purchases may be refunded are a commercial arrangement between businesses and their acquirers (the financial services firms which process card payments on behalf of businesses). Some acquirers are taking voluntary measures to support their business customers, for example through waiving fees, and the Government welcomes such action.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will review the tax liability for Benefit in Kind vehicles not registered before 6 April 2020 as a result of covid-19 restrictions which under the Worldwide Harmonized Light Duty Vehicles Test Procedure will be liable for an average increase in tax of £18 per month.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognizes the challenges faced by households as a result of COVID-19. This is why the Government has announced unprecedented support for public services, businesses and workers to protect them against the current economic emergency.
The Government has not delayed the introduction of WLTP. WLTP strengthens the link between the vehicle tax system and the true environmental impact of car purchasing decisions as well as allowing consumers to make more informed decisions between model variations. From 1 January 2021 only WLTP emissions figures will be shown on registration documents for new cars.
However, to ease the transition to WLTP, company car tax appropriate percentages for effected vehicles have been reduced for two years so company car drivers do not see a significant increase in their tax liabilities.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to ensure continued tax relief for seafarers unable to take to sea due to the covid-19 pandemic.
Answered by Jesse Norman
The Seafarer’s Earnings Deduction (SED) offers a 100 per cent reduction in income tax on maritime employment income for UK and EEA resident seafarers who have a qualifying period of time absent from the UK. The qualifying period must be made up of at least 365 days, but return visits to the UK during that time up to a maximum of 183 consecutive days can count towards the qualifying period. This is among the most generous reliefs available to seafarers worldwide.
The COVID-19 pandemic is an unprecedented interruption to many industries and businesses, and the Government has announced a broad range of support including the Coronavirus Job Retention Scheme, the Coronavirus Self-Employment Income Support Scheme, and mortgage holidays for homeowners and landlords.
The Government will keep all taxes under review.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of applying a credit for the 2020-21 financial year to VAT accounts of £17,000.
Answered by Jesse Norman
The Government has announced a range of measures to help individuals and businesses through the COVID-19 pandemic, including grants, loans and relief from business rates worth more than £300 billion. On 20 March, the Government announced that UK VAT registered businesses can defer VAT payments due with their VAT returns in the deferral period until March 2021.
While the Government keeps all taxes under review, there are currently no plans to apply a credit to VAT accounts.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of calculating VAT payable only from a turnover of £85,001 and above.
Answered by Jesse Norman
The Government consulted in 2018 on how the design of the VAT registration threshold, currently set at £85,000, could incentivise growth better.
The results of the call for evidence did not present a clear option for reform.
While there are no plans to make changes to the design of the VAT threshold, the Government continues to keep all taxes under review.
Details of the call for evidence are available online: https://www.gov.uk/government/consultations/vat-registration-threshold-call-for-evidence.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with Cabinet colleagues on the reduction in the number of free cash machines.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In line with the practice of successive administrations, details of ministerial discussions are not normally disclosed.
Treasury ministers and officials have meetings with a wide variety of organisations in the public and private sectors, including banks, as part of the process of policy development and delivery.
The Government recognises that widespread free access to cash remains extremely important to the day-to-day lives of many consumers and businesses in the UK.
The Payment Systems Regulator (PSR) regulates LINK, the scheme that runs the UK’s largest ATM network. The PSR has used its powers to hold LINK to account over its commitments to protect the broad geographic spread of free-to-use ATMs in the UK.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the potential effect of changes to eligibility for VAT registration on (a) guest houses and bed and breakfast outlets and (b) other small and medium-sized enterprises.
Answered by Mel Stride - Secretary of State for Work and Pensions
The UK's VAT registration threshold is currently set at £85,000. Businesses must register for VAT when their turnover is above £85,000. Businesses below the threshold are eligible to register voluntarily if making taxable supplies.
To assess the impact of VAT on small and medium enterprises HM Revenue and Customs commissioned Ipsos MORI to conduct research into their behaviours and experiences around VAT registration. The report was published on 16 November 2017.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what discussions he has had with Cabinet colleagues on the potential effect on small and medium-sized enterprises of any reduction in eligibility for VAT registration.
Answered by Mel Stride - Secretary of State for Work and Pensions
All businesses with a taxable turnover above the VAT threshold must register. Businesses below that threshold can voluntarily register.
The Office of Tax Simplification published their review of VAT earlier this month, which included discussion on the registration threshold. The Government will respond to their recommendations in due course.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to the Answer of 18 April 2017 to Question 69488, whether his Department's research on the effect of pricing structures on consumer understanding of foreign currency transaction fees will inform the Payment Services Regulations.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The research on the effects of transparency in overseas money transfers (involving foreign exchange) on consumer decisions helped to inform the Government’s response to its consultation on the implementation of the second Payment Services Directive (PSDII), which was published on 19 July 2017.
The Government did not include a requirement in the Payment Services Regulations 2017 for increased transparency as it had to weigh up the potential benefits of doing so against other issues, such as the Government’s approach to implementing maximum harmonising Directives.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether the contracts relating to the provision of (a) Trident and (b) Hinkley Point are denominated in pounds, euros or dollars.
Answered by David Gauke
The Hinkley Point C contract is denominated in pounds, and there has been no effect on the cost of the public purse as a result of the change in the value of the pound following the EU referendum.
All of MOD’s direct contracts with industry on the Dreadnought programme are denominated in pounds sterling. Separately, a number of specific components for the programme are purchased under a UK Government arrangement with US Government; these purchases are made in US dollars.