Asked by: Pauline Latham (Conservative - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that HMRC payroll compliance checks are (a) manageable and (b) proportionate for businesses.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC strive to ensure that all of the compliance checks carried out, including those on payroll compliance, are proportionate and manageable for those that we deal with. During a check, our officers will only request information and documents that are needed to check the customer’s tax position. They work with the customer to ensure any deadline to provide information is reasonable and achievable, considering the size and nature of the request. HMRC officials regularly engage Treasury officials and Ministers on compliance strategy, approach and priorities.
Asked by: Pauline Latham (Conservative - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether officials at his Department have had discussions with their counterparts at HMRC on the Department's policy for conducting compliance investigations of businesses' payrolls in the period since the outbreak of covid-19.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC strive to ensure that all of the compliance checks carried out, including those on payroll compliance, are proportionate and manageable for those that we deal with. During a check, our officers will only request information and documents that are needed to check the customer’s tax position. They work with the customer to ensure any deadline to provide information is reasonable and achievable, considering the size and nature of the request. HMRC officials regularly engage Treasury officials and Ministers on compliance strategy, approach and priorities.
Asked by: Pauline Latham (Conservative - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will remove VAT on (a) suntan lotion and (b) other similar products in the context of the rising cost of living.
Answered by Richard Fuller
The Government keeps all taxes under review, however, there are currently no plans to reduce or remove VAT on sunscreen products.
Although sun protection products are subject to the standard rate of VAT, high-factor sunscreen is provided VAT free when dispensed by a pharmacist.
Asked by: Pauline Latham (Conservative - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will remove VAT on (a) suntan lotion and (b) other similar products to help ensure that families are able to access those products in the context of the rising cost of living.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
Under the current VAT rules, sun protection products are subject to the standard rate of VAT. High-factor sunscreen is on the NHS prescription list for certain conditions and therefore is provided VAT free when dispensed by a pharmacist.
Expanding the scope of current VAT reliefs would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT raised around £130 billion in 2019-20 and helps to fund key spending priorities including on health, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere. In addition, this request must be viewed in the context of almost £50 billion of requests for relief from VAT received since the EU referendum. Finally, it is never guaranteed that any reduction in tax on a given item would be passed on by the manufacturers to the end consumer.
More widely, the Government is supporting the hardest hit with £37 billion of help to address the cost of living and cutting hundreds of pounds off household bills. Almost all of the eight million most vulnerable households across the UK will receive support of at least £1,200 this year, including a new one-off £650 cost of living payment. This intervention will substantially ease the burden on families in the face of high inflation.
Although the Government keep all taxes under review, there are currently no plans to reduce or remove VAT on sunscreen products.
Asked by: Pauline Latham (Conservative - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take to ensure that breweries that produce between 2,101 and 5,000 hectolitres can compete with breweries that produce between (a) 5,001 and 10,000 and (b) 10,001 and 20,000 hectolitres.
Answered by Kemi Badenoch - President of the Board of Trade
The Treasury committed to reforming Small Brewers Relief (SBR) and our review of SBR is ongoing. A technical consultation was launched in January this year to help inform the Government’s review. The consultation document provides further information on the Government’s assessment of changes and we are currently analysing the responses.
The Treasury believes that reducing the starting taper from 5,000 to 2,100 hectolitres (880,000 pints a year to 370,000 pints a year) strikes a balance between guaranteeing the full value of the relief for truly small breweries, while providing those between the 2,100 to 5,000 hectolitres threshold a smoother transition to the main duty rate. Officials are continuing to work closely with HM Revenue and Customs to deliver a relief that is sustainable and supports brewers of all sizes in the long-term.
The Government has made it clear that changes to SBR will not come into effect until at least January 2022. We will consider the state of the industry as it recovers from Covid-19, and the need to provide sufficient time for brewers to adapt, before making any changes.
Asked by: Pauline Latham (Conservative - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the number of breweries that would be affected by reducing the Small Brewers Relief 50 per cent discount duty threshold from 5,000 to 2,100 hectolitres.
Answered by Kemi Badenoch - President of the Board of Trade
The Treasury committed to reforming Small Brewers Relief (SBR) and our review of SBR is ongoing. A technical consultation was launched in January this year to help inform the Government’s review. The consultation document provides further information on the Government’s assessment of changes and we are currently analysing the responses.
The Treasury believes that reducing the starting taper from 5,000 to 2,100 hectolitres (880,000 pints a year to 370,000 pints a year) strikes a balance between guaranteeing the full value of the relief for truly small breweries, while providing those between the 2,100 to 5,000 hectolitres threshold a smoother transition to the main duty rate. Officials are continuing to work closely with HM Revenue and Customs to deliver a relief that is sustainable and supports brewers of all sizes in the long-term.
The Government has made it clear that changes to SBR will not come into effect until at least January 2022. We will consider the state of the industry as it recovers from Covid-19, and the need to provide sufficient time for brewers to adapt, before making any changes.
Asked by: Pauline Latham (Conservative - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to reduce the Small Brewers Relief 50 per cent duty threshold from 5,000 to 2,100 hectolitres.
Answered by Kemi Badenoch - President of the Board of Trade
The Treasury committed to reforming Small Brewers Relief (SBR) and our review of SBR is ongoing. A technical consultation was launched in January this year to help inform the Government’s review. The consultation document provides further information on the Government’s assessment of changes and we are currently analysing the responses.
The Treasury believes that reducing the starting taper from 5,000 to 2,100 hectolitres (880,000 pints a year to 370,000 pints a year) strikes a balance between guaranteeing the full value of the relief for truly small breweries, while providing those between the 2,100 to 5,000 hectolitres threshold a smoother transition to the main duty rate. Officials are continuing to work closely with HM Revenue and Customs to deliver a relief that is sustainable and supports brewers of all sizes in the long-term.
The Government has made it clear that changes to SBR will not come into effect until at least January 2022. We will consider the state of the industry as it recovers from Covid-19, and the need to provide sufficient time for brewers to adapt, before making any changes.
Asked by: Pauline Latham (Conservative - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support he is making available to agency workers who cannot find work and whose agencies will not furlough those workers because they are unwilling or unable to pay national insurance contributions and pension costs.
Answered by Jesse Norman
Since November, employers are only asked to cover National Insurance and employer pension contributions for hours not worked under the Coronavirus Job Retention Scheme (CJRS). This is lower than the previous level in September and October, and for an average claim accounts for just 5 per cent of total employment costs, or £70 per employee per month. Furthermore, many small employers can benefit from the Employment Allowance for support with their NICs bill, and, since March, businesses have received billions in loans, tax deferrals, Business Rate reliefs, and general and sector-specific grants. This support can be used by businesses to cover the costs of NICs and pension contributions, ensuring that they can continue to furlough their employees.
Asked by: Pauline Latham (Conservative - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that overseas sellers are aware of the need to register to pay UK VAT for goods under £135 from 1 January 2021; and when he plans to publish guidance on registration.
Answered by Jesse Norman
HMRC have published guidance on 20 July 2020 and 20 November 2020 setting out information on the proposed changes for overseas sellers and online marketplaces and what businesses will need to do in order to prepare, including when and how to register for VAT.Asked by: Pauline Latham (Conservative - Mid Derbyshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the revenue accrued by HM Treasury through tax on ivory artworks and objets d'art in each of the last five years; and if his Department will make an estimate of the potential cost to the public purse of a ban on the ivory trade in the UK in the next five years.
Answered by Jane Ellison
The information requested is not available. HM Revenue and Customs does not collect data on VAT and Customs Duty from traders to this level of detail.