Oral Answers to Questions

Stephen Hammond Excerpts

Tuesday 1st December 2020 Commons Chamber

[Jesse Norman]

I think the right hon. Gentleman is slightly unclear on this. HMRC takes careful steps to ensure that the people whom it deals with as agencies employ on a proper and appropriate basis. When, in very rare cases among hundreds and hundreds of contractors in a fast-moving market, it may become clear that someone has in fact been hired under such a scheme, it takes immediate steps to end that relationship and then to follow up, of course, and to pursue as may be required under law. If he is concerned about the interests of taxpayers, may I remind him that many of the people who benefit from disguised remuneration have not been paying tax, from which our public services benefit, and it is those taxpayers whose interests we are also seeking to protect.

[Stephen Hammond (Wimbledon) (Con)]

What steps his Department is taking to support people who are subject to the loan charge.

[The Financial Secretary to the Treasury (Jesse Norman)]

Revenue and Customs has been clear on its commitment to support all taxpayers who might need help paying their loan charge liabilities. Where someone cannot afford to pay in full on time, it will seek to agree payment by instalments. Revenue and Customs has a dedicated helpline for those seeking to leave avoidance schemes, and the disguised remuneration and debt management teams are trained to identify taxpayers who may need extra help and support, and to refer them, if necessary, to outside organisations for support.

[Stephen Hammond]

As my right hon. Friend rightly recognises, there are a number of people who cannot pay the amount either in full at the beginning or in instalments. Given that HMRC has now recognised that many of these people were victims of mis-selling, is it not time to have another review of the people who have been mis-sold these schemes, and would it not be right and appropriate for those who mis-sold the schemes to make some contribution to those demands?

[Jesse Norman]

As my hon. Friend will be aware, a long and detailed review process has been conducted by Sir Amyas Morse. It is, of course, the individual’s responsibility to ensure the accuracy of their tax returns and to understand the consequences of their decisions, although of course the Government very much sympathise with people who have been caught in that position. My hon. Friend may have noticed that we have been taking very vigorous action against promoters of tax avoidance schemes—most recently, in an announcement we made last week, HMRC and the Advertising Standards Authority are getting together to crack down on misleading promoting of tax avoidance schemes.