Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many small businesses rely on cash to function in the UK.
Answered by John Glen
Research commissioned by the Payment Systems Regulator (PSR) in 2019 found that over half of small businesses accepted cash while it accounted for only 14% of their income on average.
The COVID-19 pandemic has impacted cash usage in the short-term and is likely to have accelerated the longer-term trends of declining cash use. However, it is too early to determine the lasting effect. In November 2020, the Bank of England published their Quarterly Bulletin, which included analysis of cash acceptance. Based on a survey in July 2020 they found that 42% of people had visited a store in the previous six months that did not accept cash. That represented an increase on the January figure of 15%.
The Government created the Joint Authorities Cash Strategy Group in 2019, which has provided a forum for the public bodies to formally co-ordinate respective approaches to access to cash. This is chaired by HM Treasury and attended by the Bank of England, PSR, and Financial Conduct Authority. The Group published an update on the actions of the Group’s members in July 2020. The Government continues to engage with the regulators to monitor and assess risks around cash, including those resulting from COVID-19. In order to help control the virus, all businesses and individuals are encouraged to follow the latest Government advice. To work safely, retailers have been recommended to minimise contact around transactions, for example, considering using contactless payments. It remains the individual retailer’s choice as to whether to accept or decline any form of payment, including cash or card.
The Government has committed to bring forward legislation to ensure that the UK’s cash infrastructure is sustainable for the long term. In October 2020, the Government published a Call for Evidence on Access to Cash, which sought views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. The Government is considering responses to the Call for Evidence and will set out next steps in due course.
Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will ensure that HMRC applies FCA definitions of financial vulnerability when considering whether to refer customers to its extra support team.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC continually review how to identify customers in financial hardship so that it can offer support to them. As part of this work, they work closely with Government departments and other stakeholders, including the debt advice sector, for insights on good practice which they mirror to support customers. The department has trained collectors to identify vulnerable customers who, when identified, are referred to HMRC’s established Extra Support team for assistance.
HMRC also work to meet the Financial Conduct Authority’s guidelines where practicable. HMRC are the first Government department to become a referral partner for the Money Adviser Network, a pilot led by the Money and Pensions Service. The partnership helps HMRC test a better way to refer Tax Credits debtors to free and independent debt advice. It is a priority for HMRC to help their customers to access specialist debt advice support that is available to them; as a responsible creditor, HMRC recognise that customer debt worries often extend beyond the debt that they have with the department.
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 enabling taxpayers to challenge HMRC discretionary decisions regarding access to time to pay arrangements.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC have a very good track record for supporting individuals and viable businesses in genuine short-term financial difficulty and will always work with taxpayers to find the best possible solution. A Time to Pay arrangement is a negotiated agreement that HMRC operates within their statutory obligations to collect tax as quickly as possible. HMRC will always work with taxpayers to find the best possible solution, based on their specific circumstances.
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 - Shadow Leader of the House of Commons
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 - Shadow Leader of the House of Commons
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 - Shadow Leader of the House of Commons
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
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
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 - Shadow Leader of the House of Commons
The Financial Secretary responded to the Member on 9 November 2020. A further copy has been sent by email.