Asked by: Rebecca Long Bailey (Labour - Salford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will introduce a mechanism for businesses to opt to close once they meet certain criteria to enable access to more appropriate financial support and furloughing schemes .
Answered by Kemi Badenoch - Leader of HM Official Opposition
Throughout the pandemic the government’s economic priority has remained the same: to protect jobs and livelihoods. Since March, the government has provided support for people, businesses and public services totalling an estimated £200 billion. We are committed to ensuring we take the right action at the right time to support individuals and businesses in every region and nation of the United Kingdom.
That is why we have a substantial support package available for businesses regardless of whether they are open or closed. The Chancellor recently announced that the Coronavirus Job Retention Scheme (CJRS) has been extended until the end of March 2021. This provides businesses with a grant to cover 80% of the wages of their employees. We have added additional flexibility so it can be used to cover reduced hours as well as for businesses that are closed. To date CJRS has support 9.6 million jobs at the cost of roughly £41.9bn.
Alongside the CJRS, businesses have also benefited from the access to finance schemes, including the Coronavirus Business Interruption Loan Scheme and the Bounce Back Loan Scheme. Under the BBLS, the government provides lenders with a 100% guarantee to enable them to provide loans between £2,000 and £50,000 to the smallest businesses across the UK with a simple, streamlined application process. All eligible businesses in the retail, hospitality and leisure sectors will pay no business rates in England for 12 months from 1 April 2020. Businesses will also benefit from the reduced rate of VAT for tourist attractions and goods & services supplied by the hospitality sector.
For businesses that remain open but are severely affected by restrictions can receive support through the Local Restrictions Support Grant (open), which provides up to £2,100 of support per month. They can also access one-off funding through the Additional Restrictions Grant, worth £1.1bn nationally and distributed by local authorities.
Asked by: Rebecca Long Bailey (Labour - Salford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the temporarily reduced rate of VAT for (a) retail, (b) hospitality and (c) other heavily effected sectors in response to the covid-19 outbreak.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and will run until 31 March 2021. This relief comes at a significant cost to the Exchequer, and there are currently no plans to extend the scope to include other sectors.
The Government has announced a significant support package to help businesses through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the government-backed loan schemes.
Asked by: Rebecca Long Bailey (Labour - Salford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to subsidise employer contributions to future rollouts of the JSS for businesses in the sectors most effected by the covid-19 outbreak.
Answered by Steve Barclay
As the Chancellor recently announced, the Coronavirus Job Retention Scheme (CJRS) CJRS has now been extended until the end of March 2021. In light of that, the Job Support Scheme has been postponed.
Under CJRS, eligible employees will receive 80 per cent of their usual salary for hours not worked, up to a maximum of £2,500 per month, and businesses will have flexibility to use the scheme for employees for any amount of time and shift pattern, including furloughing them full-time.
There is no employer contribution to wages for hours not worked. Employers will only be asked to cover National Insurance and Employer pension contributions for hours not worked. For an average claim, this accounts for just 5 per cent of total employment costs or £70 per employee per month. The Government will review the policy in January.
Additionally, we are supporting businesses affected by restrictions through:
The Local Restrictions Support Grant, giving businesses that are forced to close due to national or local restrictions up to £3,000 per month; this is worth over £1bn per four weeks with the new restrictions in place and will benefit over 600,000 business premises.
One-off funding available to every local authority in England under the Additional Restrictions Grant, worth £1.1bn nationally; this allows local authorities to help businesses affected but not closed by restrictions.Asked by: Rebecca Long Bailey (Labour - Salford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure the prosecution of the creators and promoters of disguised remuneration schemes relating to the Loan Charge.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government and HMRC are determined to continue to tackle promoters of tax avoidance schemes.
While there is no specific offence relating to the promotion of tax avoidance schemes, there are criminal offences under which promoters who commit fraud can be prosecuted, such as the offence of cheating the public revenue. HMRC always consider whether there are grounds for conducting a criminal investigation against promoters, including those who promote disguised remuneration schemes.
Asked by: Rebecca Long Bailey (Labour - Salford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to ensure the settlement of Loan Charge cases by differentiating between (a) people who entered into tax avoidance schemes in full knowledge of their purpose and (b) people (i) who were entered into those schemes (A) without advice, (B) by their employers and (C) by an advisor and (ii) whose participation in those schemes was a condition of the provision of services.
Answered by Jesse Norman - Shadow Leader of the House of Commons
When working with taxpayers to reach a settlement, HM Revenue and Customs (HMRC) seek to clarify and confirm the relevant facts of each individual case with the taxpayer. To maintain a consistent approach, cases are settled in accordance with HMRC’s Litigation and Settlement Strategy, which requires that HMRC only settle for an amount that is consistent with the law. While the Government has sympathy for anyone who believes they were misled into using disguised remuneration schemes, it is an individual’s responsibility to ensure the accuracy of their tax return and to understand the consequences of their decisions.
The Government will continue to tackle this type of tax avoidance and on 19 March 2020, HMRC published their strategy for tackling promoters of tax avoidance schemes. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust actions against promoters of tax avoidance. The Promoter Strategy is available on GOV.UK.
The Government recognises the importance of taxpayers being able to get reliable tax advice which is competent, professional and trustworthy. In March 2020, the Government issued a call for evidence on raising standards in the tax advice market and has recently published a summary of responses and next steps. As a first step, the Government will consult on introducing a requirement for all tax advisers to hold professional indemnity insurance as a way of providing recourse, protecting taxpayers and raising standards in the tax advice market. The Government will also raise awareness of the HMRC standard for agents and review HMRC powers to enforce this standard.
Asked by: Rebecca Long Bailey (Labour - Salford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC holds information on the number of people subject to the Loan Charge who have stated that they received incorrect or no advice from advisors or promoters when they entered into those taxation schemes.
Answered by Jesse Norman - Shadow Leader of the House of Commons
When working with taxpayers to reach a settlement, HM Revenue and Customs (HMRC) seek to clarify and confirm the relevant facts of each individual case with the taxpayer. To maintain a consistent approach, cases are settled in accordance with HMRC’s Litigation and Settlement Strategy, which requires that HMRC only settle for an amount that is consistent with the law. While the Government has sympathy for anyone who believes they were misled into using disguised remuneration schemes, it is an individual’s responsibility to ensure the accuracy of their tax return and to understand the consequences of their decisions.
The Government will continue to tackle this type of tax avoidance and on 19 March 2020, HMRC published their strategy for tackling promoters of tax avoidance schemes. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust actions against promoters of tax avoidance. The Promoter Strategy is available on GOV.UK.
The Government recognises the importance of taxpayers being able to get reliable tax advice which is competent, professional and trustworthy. In March 2020, the Government issued a call for evidence on raising standards in the tax advice market and has recently published a summary of responses and next steps. As a first step, the Government will consult on introducing a requirement for all tax advisers to hold professional indemnity insurance as a way of providing recourse, protecting taxpayers and raising standards in the tax advice market. The Government will also raise awareness of the HMRC standard for agents and review HMRC powers to enforce this standard.
Asked by: Rebecca Long Bailey (Labour - Salford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take in facilitating Loan Charge settlements with HMRC to protect individuals who were misled or incorrectly advised by Loan Charge promoters or advisors on entering those taxation schemes.
Answered by Jesse Norman - Shadow Leader of the House of Commons
When working with taxpayers to reach a settlement, HM Revenue and Customs (HMRC) seek to clarify and confirm the relevant facts of each individual case with the taxpayer. To maintain a consistent approach, cases are settled in accordance with HMRC’s Litigation and Settlement Strategy, which requires that HMRC only settle for an amount that is consistent with the law. While the Government has sympathy for anyone who believes they were misled into using disguised remuneration schemes, it is an individual’s responsibility to ensure the accuracy of their tax return and to understand the consequences of their decisions.
The Government will continue to tackle this type of tax avoidance and on 19 March 2020, HMRC published their strategy for tackling promoters of tax avoidance schemes. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust actions against promoters of tax avoidance. The Promoter Strategy is available on GOV.UK.
The Government recognises the importance of taxpayers being able to get reliable tax advice which is competent, professional and trustworthy. In March 2020, the Government issued a call for evidence on raising standards in the tax advice market and has recently published a summary of responses and next steps. As a first step, the Government will consult on introducing a requirement for all tax advisers to hold professional indemnity insurance as a way of providing recourse, protecting taxpayers and raising standards in the tax advice market. The Government will also raise awareness of the HMRC standard for agents and review HMRC powers to enforce this standard.
Asked by: Rebecca Long Bailey (Labour - Salford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people are subject to the 2019 Loan Charge in (a) Greater Manchester and (b) Salford and Eccles constituency.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government estimates that about 50,000 individuals are affected by the 2019 Loan Charge. Information is not held at constituency, borough or regional level.Asked by: Rebecca Long Bailey (Labour - Salford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC is taking to pursue and issue penalties to promoters of (a) disguised remuneration and (b) other tax avoidance schemes through the (i) Disclosure of Tax Avoidance Scheme, (ii) Promoters of Tax Avoidance Scheme and (iii) Enablers Penalty.
Answered by Jesse Norman - Shadow Leader of the House of Commons
In March 2020, Her Majesty’s Revenue and Customs (HMRC) published their strategy for tackling promoters of tax avoidance schemes, including disguised remuneration schemes. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust action against promoters of tax avoidance. The Promoter Strategy is available on GOV.UK.
HMRC are committed to challenging promoters, and will always pursue penalties in appropriate cases, under the Disclosure of Tax Avoidance Schemes (DOTAS), the Promoters of Tax Avoidance Schemes (POTAS) and the Enablers regimes. The Government announced on 12 November further proposals in the L-Day package to tackle promoters, which it will consult on in Spring.
In 2019-20 HMRC doubled the resources committed to tackling promoters and disrupting their business models by persuading taxpayers to get out of avoidance at an early stage. HMRC now have about 200 Full Time Equivalents working in this area; the teams use all the powers available to HMRC to tackle promoters. HMRC do not have separately identified staff pursuing each penalty type in isolation.
Asked by: Rebecca Long Bailey (Labour - Salford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many HMRC staff have been appointed to pursue and issue penalties to promoters of disguised remuneration and other tax avoidance schemes under (a) Disclosure of Tax Avoidance Schemes, (b) Promoters of Tax Avoidance Schemes and (c) Penalties for Enablers of Defeated Tax Avoidance.
Answered by Jesse Norman - Shadow Leader of the House of Commons
In March 2020, Her Majesty’s Revenue and Customs (HMRC) published their strategy for tackling promoters of tax avoidance schemes, including disguised remuneration schemes. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust action against promoters of tax avoidance. The Promoter Strategy is available on GOV.UK.
HMRC are committed to challenging promoters, and will always pursue penalties in appropriate cases, under the Disclosure of Tax Avoidance Schemes (DOTAS), the Promoters of Tax Avoidance Schemes (POTAS) and the Enablers regimes. The Government announced on 12 November further proposals in the L-Day package to tackle promoters, which it will consult on in Spring.
In 2019-20 HMRC doubled the resources committed to tackling promoters and disrupting their business models by persuading taxpayers to get out of avoidance at an early stage. HMRC now have about 200 Full Time Equivalents working in this area; the teams use all the powers available to HMRC to tackle promoters. HMRC do not have separately identified staff pursuing each penalty type in isolation.