Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much public money from covid support schemes has been paid to UK offices of the Iranian Government.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
HM Treasury does not comment on the commercial or financial matters of private firms.
However, data on the employers who have claimed through the Coronavirus Job Retention Scheme (CJRS) is published regularly. For monthly data on the employers who have claimed through the Coronavirus Job Retention Scheme (CJRS) since December 2020, please see the published information at the following link: https://www.gov.uk/government/publications/employers-who-have-claimed-through-the-coronavirus-job-retention-scheme. The November 2021 publication provides the data for claim periods from December 2020 to August 2021. These details are correct at the date of publishing.
Similarly, details of facilities made available to businesses under the covid loan schemes where required have either been published, or will be in the future, on the European Commission’s transparency database.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect on members of ethnic minority communities of the changes to IR35 rules which came into effect in April 2021.
Answered by Jesse Norman
The off-payroll working rules only apply to individuals who are working like employees under the current employment status tests, and do not apply to the self-employed.
The Tax Information and Impact Note (TIIN) published at Spring Budget 2021 set out that the reform of the off-payroll working rules is expected to affect up to 60,000 medium and large enterprises, about 180,000 individuals working through their own companies, and approximately 20,000 agencies nationally. The TIIN can be found on GOV.UK: https://www.gov.uk/government/publications/off-payroll-working-rules-from-april-2021/off-payroll-working-rules-from-april-2021.
As set out in the TIIN, the reform of the off-payroll working rules is not anticipated to have an impact on groups sharing protected characteristics.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking on the mis-selling of schemes now subject to the Loan Charge.
Answered by Jesse Norman
While the Government sympathises with anyone who believes they were misled into using a disguised remuneration (DR) scheme, it is an individual’s responsibility to ensure the accuracy of their tax return and to understand the consequences of their decisions.
The Government and HMRC are determined to continue to tackle promoters of tax avoidance schemes. This includes challenging those who promote disguised remuneration loan schemes.
In 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.
Last month HMRC launched the ‘Tax avoidance: don’t get caught out’ communications campaign. The campaign is targeted at contractors and encourages them to stop and take time to check what they are signing up for, challenge what they have been told by those selling the scheme, and protect themselves and public services by reporting schemes to HMRC.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the effect on small businesses of changes in the level of dividend taxes.
Answered by Jesse Norman
Dividend tax is paid by individual shareholders rather than businesses. Dividend taxes were changed in 2016 and again in 2018. In 2016 the dividend tax credit was abolished and replaced with a new £5,000 allowance, and an increase of 7.5 percentage points was also introduced in each tax band. Over 75 per cent of dividend taxpayers either gained from or were unaffected by these changes, and about one million individuals benefited from a tax reduction on their dividend income due to the new Dividend Allowance. The full impacts were set out in the Tax Information and Impact Note published here:
This change was made to help address the incentive for some people to set up a company and make payments as dividends rather than as wages simply to reduce their tax bill. The changes simplified, reformed and modernised dividend taxation, helping to create a fairer tax system.
In 2018, the Dividend Allowance was reduced from £5,000 to £2,000 to ensure support for investors was targeted more fairly. About two thirds of all those with dividend income were unaffected by this measure. Only those individuals and households who were in receipt of dividend income between £2,000 and £5,000 were affected. The full impacts were set out in the Tax Information and Impact Note published here: https://www.gov.uk/government/publications/income-tax-dividend-allowance-reduction.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of a backdated furlough scheme for people who were denied furlough by their employer.
Answered by Jesse Norman
In light of the changing path of the virus, the Coronavirus Job Retention Scheme has been extended until the end of March 2021 for all parts of the UK. People employed and on payroll on 30 October will be eligible, and neither the employer nor the employee needs to have previously claimed or have been claimed for under CJRS to make a claim under the extended CJRS, if other eligibility criteria are met. If employees were employed as of 23 September 2020 and were made redundant or stopped working for their employer prior to 30 October 2020, they can also qualify for the scheme if their employer re-employs them. This will ensure that there is no gap in support.
The furloughing of staff through the Coronavirus Job Retention Scheme is a voluntary arrangement entered at the employers’ discretion and agreed by employees. That means it is not for the Government to decide whether an individual firm should put its staff on furlough or take its staff off furlough. That is a decision for the employer, in consultation with the employee.
Where firms make the decision that they cannot retain?all of?their staff over the longer run, the Government is ensuring that those looking for work are supported. A package of measures in the Plan for Jobs will help people find work by significantly increasing help offered through Jobcentres and providing individualised advice through the National Careers Service. The Government?has also launched?the Kickstart Scheme, a £2 billion fund to create hundreds of thousands of new, fully subsidised jobs for young people.
Temporary welfare measures announced in March will also benefit new and existing claimants. These include the £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1 billion increase in support for renters through increases to the Local?Housing Allowance rates for Universal Credit and Housing Benefit claimants.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the coronavirus job retention scheme to people who would have qualified for that scheme if their employer had made an application to it.
Answered by Jesse Norman
In light of the changing path of the virus, the Coronavirus Job Retention Scheme has been extended until the end of March 2021 for all parts of the UK. People employed and on payroll on 30 October will be eligible, and neither the employer nor the employee needs to have previously claimed or have been claimed for under CJRS to make a claim under the extended CJRS, if other eligibility criteria are met. If employees were employed as of 23 September 2020 and were made redundant or stopped working for their employer prior to 30 October 2020, they can also qualify for the scheme if their employer re-employs them. This will ensure that there is no gap in support.
The furloughing of staff through the Coronavirus Job Retention Scheme is a voluntary arrangement entered at the employers’ discretion and agreed by employees. That means it is not for the Government to decide whether an individual firm should put its staff on furlough or take its staff off furlough. That is a decision for the employer, in consultation with the employee.
Where firms make the decision that they cannot retain?all of?their staff over the longer run, the Government is ensuring that those looking for work are supported. A package of measures in the Plan for Jobs will help people find work by significantly increasing help offered through Jobcentres and providing individualised advice through the National Careers Service. The Government?has also launched?the Kickstart Scheme, a £2 billion fund to create hundreds of thousands of new, fully subsidised jobs for young people.
Temporary welfare measures announced in March will also benefit new and existing claimants. These include the £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1 billion increase in support for renters through increases to the Local?Housing Allowance rates for Universal Credit and Housing Benefit claimants.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an estimate of the number of people who were denied furlough by their employers.
Answered by Jesse Norman
An estimate of the number of people who were denied furlough by their employer is not available. Decisions on whether to offer to furlough individuals are a matter for employers, and that process does not involve HMRC.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to prevent fraud in the Eat Out to Help Out scheme.
Answered by Jesse Norman
The vast majority of businesses operated the Eat Out to Help Out scheme correctly.
HMRC built checks into the system to help prevent fraud and protect public money.
HMRC carried out checks on businesses at the time of registration. HMRC are also checking claims and taking appropriate action to withhold payments found to be dishonest or inaccurate.
Businesses are also required to retain records to support their Eat Out to Help Out claims and provide them to HMRC if asked. They will also need to include the income from the discounted meals and reimbursed discounts in their tax returns. HMRC may undertake further compliance action when returns have been received.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what precautions are in place to prevent fraudulent claims being made under the Eat Out to Help Out scheme.
Answered by Jesse Norman
The vast majority of businesses operated the Eat Out to Help Out scheme correctly.
HMRC built checks into the system to help prevent fraud and protect public money.
HMRC carried out checks on businesses at the time of registration. HMRC are also checking claims and taking appropriate action to withhold payments found to be dishonest or inaccurate.
Businesses are also required to retain records to support their Eat Out to Help Out claims and provide them to HMRC if asked. They will also need to include the income from the discounted meals and reimbursed discounts in their tax returns. HMRC may undertake further compliance action when returns have been received.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of providing specific support to wet-led pubs to help them recover from the effects of the covid-19 outbreak.
Answered by Jesse Norman
The hospitality sector, including wet-led pubs, continues to have access to a range of government support measures including, but not limited to:
In addition to this unprecedented package of support for businesses, the Summer Economic Update announced a VAT rate reduction from 20% to 5% - worth £4.1bn – for hospitality, accommodation and attractions, and the £500m Eat Out to Help Out scheme which entitles every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café or pub on Monday to Wednesdays throughout August. Over 85% of pubs serve food and will benefit from both schemes. All pubs, including wet-led pubs will also benefit from the proposed regulatory easements in the Business and Planning Bill, which will make it easier, quicker and cheaper to set up furniture in adjacent outdoor spaces and to automatically convert all current licenses to allow pubs to sell off-licence.