Asked by: Ross Thomson (Conservative - Aberdeen South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he has taken to ensure that those affected by the 2019 loan charge are not forced into bankruptcy by the repayments.
Answered by Mel Stride - Secretary of State for Work and Pensions
Disguised Remuneration (DR) schemes are contrived arrangements that pay loans in place of ordinary remuneration with the sole purpose of avoiding income tax and National Insurance contributions. On average loan scheme users have twice as much income as the average UK taxpayer, when taking into account the loan they received.
HMRC is working hard to help individuals get out of tax avoidance for good and are encouraging anyone who is concerned about their ability to pay to contact them as soon as possible to discuss their options. HMRC has set up a dedicated helpline for those wanting to settle their avoidance scheme use, and discuss payment options.
HMRC does not want to make anybody bankrupt and very few cases ever reach that stage. They will work with all individuals to reach a manageable and sustainable payment plan wherever possible.
HMRC has simplified the process for those who choose to settle their use of avoidance schemes before the loan charge arises, so that those earning less than £50,000 a year and are no longer engaging in tax avoidance can agree a payment plan of up to five years without the need for detailed supporting information. There is no maximum period within which an overall settlement can be agreed, and all individual cases will be dealt with appropriately and sympathetically.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements on disguised remuneration schemes with employers and individuals of over 650 million pounds. More than 90% of this amount was collected from employers, with less than 10% from individuals.
Asked by: Ross Thomson (Conservative - Aberdeen South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to respond to the House of Lords Economic Affairs Sub-Committee report entitled The powers of HMRC: treating taxpayers fairly, HL 242.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Government will respond to the sub-Committee’s report in due course and in the usual way.
Asked by: Ross Thomson (Conservative - Aberdeen South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the number of people in the Aberdeen South constituency affected by the 2019 Loan Charge.
Answered by Mel Stride - Secretary of State for Work and Pensions
The 2019 loan charge is targeted at disguised remuneration (DR) schemes. These are artificial tax avoidance schemes where earnings are paid in the form of non-repayable loans made by a third party.
DR schemes are contrived arrangements that pay loans in place of ordinary remuneration with the sole purpose of avoiding income tax and National Insurance contributions. When taking into account the loan they received, loan scheme users have on average twice as much income as the average UK taxpayer.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements on disguised remuneration schemes with employers and individuals of over 650 million pounds. More than 90% of this amount was collected from employers, with less than 10% from individuals.
HMRC have also simplified the process for those who choose to settle their use of avoidance schemes before the charge arises, so that those earning less than £50,000 a year and no longer engaging in tax avoidance can agree a payment plan of up to five years without the need for detailed supporting information. There is no maximum period within which an overall settlement can be agreed, and HMRC will deal with individual cases appropriately and sympathetically.
50,000 individuals are estimated to be affected by the introduction of the DR loan charge across the UK. Information is not held at constituency level.
Asked by: Ross Thomson (Conservative - Aberdeen South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential economic benefits arising from the proposals on transferable tax history in the oil and gas sector set out in Autumn Budget 2017.
Answered by Robert Jenrick
At the Autumn Budget, the government announced it would introduce a Transferable Tax History for oil & gas companies. This will give investors in UK oil and gas fields certainty that they will be able to get tax relief for decommissioning assets. This should encourage new investment in older oil and gas fields, keeping them producing for longer and supporting employment.
The main industry body, Oil and Gas UK, in response to the Budget announcement have said that a Transferable Tax History would be ‘a vital step that can bring in new investment to increase recovery from existing fields and fund fresh investment which is key to generating activity for our hard-pressed supply chain. It will also help extend the lives of many mature fields and postpone decommissioning.’
This builds on the £2.3bn of fiscal support the government has already provided to the UK oil and gas industry, including a package of tax cuts across Budget 2015 and 2016, £40m of funding for seismic surveys to support exploration, and the introduction of a new Investment Allowance. As a result, the UK now has one of the most competitive tax regimes in the world for oil and gas, further supporting investment and jobs.
Asked by: Ross Thomson (Conservative - Aberdeen South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of proposed closure of all HM Revenue and Customs offices in Scotland outside Glasgow and Edinburgh on the distribution of public sector resources between the (a) central belt and (b) rest of Scotland.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC will have two regional centres which will serve the whole of Scotland. They will be located in Glasgow and Edinburgh, the locations which most comprehensively met HMRC’s selection criteria. The spread of HMRC‘s regional centres around the UK supports the Government’s strategy of jobs in every region and nation of the UK.
Asked by: Ross Thomson (Conservative - Aberdeen South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will undertake a cost-benefit analysis of maintaining a third HM Revenue and Customs (HMRC) office in Scotland, north of Glasgow and Edinburgh, by exempting the Ruby House office in Aberdeen from the proposed HMRC office closures.
Answered by Mel Stride - Secretary of State for Work and Pensions
HM Revenue and Customs (HMRC) established a clear set of location principles to determine where to site its regional centres and considered these principles alongside the impact on its people. Its Locations Programme will bring teams together in large offices, enabling them to work together to maximise tax revenue and tackle fraud and evasion irrespective of where it occurs.
HMRC is confident that the regional centres in Edinburgh and Glasgow, together with its specialist site at Gartcosh, will serve the whole of Scotland effectively.
Asked by: Ross Thomson (Conservative - Aberdeen South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect on the economy of north-east Scotland of the proposed closure of all HM Revenue and Customs offices north of Glasgow and Edinburgh, including the office at Ruby House, Aberdeen.
Answered by Mel Stride - Secretary of State for Work and Pensions
HM Revenue and Customs (HMRC) established a clear set of location principles to determine where to site its regional centres and considered these principles alongside the impact on its people. Its Locations Programme will bring teams together in large offices, enabling them to work together to maximise tax revenue and tackle fraud and evasion irrespective of where it occurs.
HMRC is confident that the regional centres in Edinburgh and Glasgow, together with its specialist site at Gartcosh, will serve the whole of Scotland effectively.
Asked by: Ross Thomson (Conservative - Aberdeen South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of the proposed closure of the Ruby House HM Revenue and Customs office in Aberdeen on the local economy.
Answered by Mel Stride - Secretary of State for Work and Pensions
HM Revenue and Customs’ (HMRC’s) Locations Programme will save more than £300 million up to 2025, and will deliver annual cash savings of £74 million in 2025/26, rising to more than £90m by 2028.
Moving to Regional Centres will also deliver benefits to tax collection and customer service. The Locations Programme will bring teams together in large offices, enabling them to work together to tackle fraud and evasion, irrespective of where it occurs. The benefits have therefore been considered as a whole and not in isolation of an individual office.
HMRC is prioritising its commitment to maximising tax revenue, increasing compliance and reducing the tax gap.
Asked by: Ross Thomson (Conservative - Aberdeen South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the potential savings to the public purse from the proposed closure of the Ruby House HM Revenue and Customs (HMRC) office in Aberdeen; and what account was taken in making the decision to close that office of the potential effect of that proposed closure on HMRCs' ability to collect tax.
Answered by Mel Stride - Secretary of State for Work and Pensions
HM Revenue and Customs’ (HMRC’s) Locations Programme will save more than £300 million up to 2025, and will deliver annual cash savings of £74 million in 2025/26, rising to more than £90m by 2028.
Moving to Regional Centres will also deliver benefits to tax collection and customer service. The Locations Programme will bring teams together in large offices, enabling them to work together to tackle fraud and evasion, irrespective of where it occurs. The benefits have therefore been considered as a whole and not in isolation of an individual office.
HMRC is prioritising its commitment to maximising tax revenue, increasing compliance and reducing the tax gap.