Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his policy is on ensuring that HMRC notifies people approaching the age threshold to drawn down pensions of their potential liability to incur High Income Child Benefit Charges.
Answered by Jesse Norman
HM Revenue and Customs (HMRC) have taken considerable steps to raise awareness of the High Income Child Benefit Charge (HICBC).
They use a wide array of channels to reach those who may be liable to pay HICBC. This includes sharing information via social media, through third parties such as websites aimed at parents or families, and on GOV.UK. The main landing page on GOV.UK for Self-Assessment guidance highlights HICBC as one of the reasons why someone might need to file a tax return.
There is also a prominent message about HICBC on the Child Benefit claim form. In addition, where HMRC hold all the relevant information, they write to parents who may have become liable for HICBC, explaining what they need to do to pay the charge when it is due and avoid penalties.
Families can use the calculator at GOV.UK to work out how much tax they may have to pay: www.gov.uk/child-benefit-tax-calculator.
Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his policy is on bringing state pension and benefits within PAYE.
Answered by Jesse Norman
The State Pension and other benefits are paid directly to the recipient by DWP and HMRC. The Government has no plans to change this.
The tax treatment of social security benefits is based on the type of payment and the reason why it is provided. In general, benefits that are designed to replace income are taxable, including the State Pension, and benefits that meet specific costs are not taxable.
It is also important to note that the personal allowance – the amount of income that each individual may receive before paying income tax – is currently set at a level high enough to ensure that those pensioners whose sole income is the new State Pension or basic State Pension do not pay any income tax.
Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his policy is on increasing rent-a-room tax relief in line with RPI on an annual basis.
Answered by Jesse Norman
Rent a Room relief has been a feature of the income tax system since 1992.
In 2016, the threshold was raised to give an income tax exemption on income of up to £7,500 for individuals who let furnished accommodation in their only or main residence. This aligns with the Government’s objectives of supporting living standards and increasing the availability of low-cost housing. It also reduces and simplifies the tax and administration burden for those affected and has taken some taxpayers out of Self-Assessment entirely.
The Government consulted on the scheme in 2018. The response to this showed there to be a consensus that the relief at the current level provides an effective incentive for people to make spare rooms available for rent.
In addition, the Government does not have evidence that increasing the Rent a Room threshold above £7,500 would further encourage spare rooms to be made available for rent. At present, the Government believes that the threshold is set at an appropriate level.
As with all tax policy, the Government keeps this relief under review.
Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to place on a statutory basis the transfer of information between HMRC and the Department for Work and Pensions relating to eligibility for tax credits and their interaction with other qualifying disability benefits so as to allow for redress in cases of incorrect decisions.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
It remains a fundamental principle that claimants are responsible for notifying HMRC of any changes in their circumstances and for claiming the entitlement they may be eligible for.
Although there are no plans to put the administrative processes currently used on a statutory footing, DWP routinely share information with HMRC about the start and end dates of disability benefit awards to underpin claimant notification and ensure correct decisions are made about tax credits entitlement.
Furthermore, the Government has recently legislated to ensure that HMRC have the full powers to review tax credits awards as intended, and apply disability elements in retrospect where appropriate.
Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many payments were made to the Government's Donations and Bequests Account in respect of the National Debt in financial year 2019-20; and what the value of those payments was.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The United Kingdom Debt Management Office (DMO), on behalf of the Commissioners of the Reduction of the National Debt (CRND), can confirm that nine payments were made to the Government’s Donations and Bequests Account in respect of the National Debt in financial year 2019-20. The total value of the payments received was £49,000, which is reflected in the CRND Annual Report and Accounts available via the following link:
Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to reply to the letter of 18 March 2020 and email of 6 October 2020 from the hon. Member for Blackpool North and Cleveleys on VAT and veterinary fees raised on behalf of a constituent.
Answered by Jesse Norman
The Financial Secretary responded to the Member on 9 November 2020. A further copy has been sent by email.Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to maintain banking industry membership of (a) LINK and (b) the Post Office Banking Framework.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government continues to be fully supportive of the Post Office Banking Framework Agreement. The agreement allows 95% of business and 99% of personal banking customers to carry out their everyday banking at 11,500 Post Office branches in the UK until December 2022. The terms of future Banking Framework Agreements are commercial decisions between industry and the Post Office. The Government will continue to engage with industry and the Post Office to ensure that that all customers, wherever they live, continue to have access to over the counter banking services.
Since 1998, all the major UK banks and building societies have participated in LINK, enabling their ATMs to be used by customers of the other members of the network. Presently, ATMs are the most commonly used means of withdrawing cash. Membership to LINK is a commercial decision.
Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the £594m discretionary fund announced to support businesses impacted by the January 2021 covid-19 lockdown will be accessible to (a) airlines, (b) airports, (c) ground handlers and (d) other aviation businesses.
Answered by Kemi Badenoch - President of the Board of Trade
As per the Chancellor’s announcement on 5 January, local authorities in England will receive a £500 million top-up to the £1.1 billion which they have already received for the Additional Restrictions Grant (ARG). We encourage local authorities to use their ARG allocations to set up a discretionary grant scheme, for example to make payments to businesses which are affected by the lockdown, but which are not legally closed themselves. Local authorities can also use the ARG to support businesses indirectly including by providing additional guidance and support for businesses in their areas.
Local Authorities are responsible for determining the precise eligibility for the Additional Restrictions Grant in their areas, based on their assessment of local economic need.
The announcement on 5 January also includes £729 million of funding for the devolved administrations as part of the unprecedented upfront funding guarantee. The total of the guarantee is reviewed regularly to ensure it reflects all additional funding and was most recently increased by £800 million to £16.8 billion on 24 December.
Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to authorise the Financial Conduct Authority to regulate businesses in the buy now, pay later sector.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Buy-now-pay-later products that apply interest are regulated credit agreements, and therefore firms offering them must be authorised and regulated by the Financial Conduct Authority (FCA) and must comply with the relevant sections of the FCA’s Consumer Credit sourcebook and provisions contained within the Consumer Credit Act 1974. However, buy-now-pay-later products that are interest-free, repayable by no more than 12 instalments within no more than 12 months, and are used to finance specific goods or services, are unregulated.
Former interim CEO of the FCA, Chris Woolard, is currently undertaking a review into change and innovation in the unsecured credit market, which includes unregulated buy-now-pay-later products.
When the review reports in early 2021, the Government will assess the findings and will take quick, proportionate action if substantive evidence of consumer harm is found to be occurring.
Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with the (a) Financial Conduct Authority, (b) Payment Systems Regulator and (c) industry stakeholders on a minimum service guarantee for cash; and when he plans to bring forward legislative proposals on protecting access to cash.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains important to millions of people across the UK, which is why it has committed to legislate to protect access to cash and to ensure that the UK’s cash infrastructure is sustainable in the long term. Government is working at pace, engaging with industry and the regulators – the Financial Conduct Authority, Payment Systems Regulator and Bank of England, including through the Treasury-chaired Joint Authorities Cash Strategy Group – whilst designing legislation.
To inform the development of this legislation, the Government published a Call for Evidence on 15 October seeking views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. As set out in the Call for Evidence, the Government considers that there may be benefit in giving a single authority overall responsibility for setting requirements to ensure that the retail distribution of cash meets the needs of consumers and businesses. The government’s view is that the FCA may be well positioned to take on the function through legislation.