Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether HMRC is taking steps to investigate the promoters of the avoidance schemes covered by the 2019 Loan Charge provisions of the Finance Act 2017.
Answered by Mel Stride - Secretary of State for Work and Pensions
The 2019 loan charge is targeted at artificial tax avoidance schemes where earnings were paid via a third party in the form of ‘loans’ which in reality were never repaid – ‘disguised remuneration’ (DR) schemes.
The Government has taken this action to ensure that everybody pays the taxes they owe and contribute towards the public-funded services from which they benefit.
Early Day Motion (EDM) 1239 calls for the loan charge to apply only to DR loans entered into after Finance Act 2017 received Royal Assent. Restricting the loan charge in this way would not be fair to ordinary taxpayers, who have always paid the right amount of tax and have not engaged in tax avoidance schemes.
The Government recognises that the loan charge will have a significant impact on some people who have used DR schemes. HMRC is encouraging scheme users to come forward and settle their tax affairs ahead of the loan charge arising. HMRC has a strong track record in helping those who are in genuine financial difficulty. HMRC is able to agree bespoke payment arrangements, allowing individuals to pay their tax bill over time.
HMRC pursues those who promote or enable tax avoidance schemes to ensure that nobody profits from selling avoidance. HMRC is able to charge tough penalties of up to £1m where promoters do not provide clear and accurate information to their clients, and penalties of 100% of the fees earned by anyone who designs, sells, or otherwise enables the use of tax avoidance arrangements.
HMRC is proactively reporting DR scheme promoters to the Advertising Standards Authority and professional bodies where they make misleading claims about their products and services or provide misleading advice.
HMRC will also consider criminal investigation where appropriate. Promoters of tax avoidance schemes have been prosecuted, leading to convictions and jail terms.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what proportion of landlords will pay more tax as a result of changes to the taxation arrangements for mortgage interest payments.
Answered by Mel Stride - Secretary of State for Work and Pensions
Using income tax self-assessment data, HMRC estimates that 1 in 5 landlords will pay more tax as a result of the changes to taxation arrangements for mortgage interest payments.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the amount of additional tax landlords will pay as a result of changes to the tax treatment of mortgage interest.
Answered by Mel Stride - Secretary of State for Work and Pensions
The most recent estimate for the fiscal impact of the changes to the tax treatment of mortgage interest for individual landlords was published in Table 2.2 at the time of Autumn Budget 2017. The Table can be accessed through the “Autumn Budget 2017: documents” webpage (https://www.gov.uk/government/publications/autumn-budget-2017-documents).
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how much revenue has been raised through measures to tackle aggressive tax avoidance by large companies since 2010.
Answered by Jane Ellison
HM Revenue and Customs has secured £140 billion in additional revenues since 2010 as a result of tackling avoidance, evasion and non-compliance. This includes more than £45 billion from big businesses.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 20 December 2016 to Question 57196, when his Department will publish its response to the consultation on Making Tax Digital.
Answered by Jane Ellison
The Government response to the Making Tax Digital consultations was published on 31 January.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when he plans to make available the free software from HM Revenue and Customs to enable compliance with quarterly reporting obligations being imposed under the Making Tax Digital programme.
Answered by Jane Ellison
HM Revenue and Customs is working closely with the software industry to ensure that a range of software products (including free software) is available before the commencement of Making Tax Digital in April 2018.
The tax system already provides support via various reliefs and deductions for the purchase of hardware and software as well as other expenditure. As part of the Making Tax Digital consultations, the Government sought views on further financial assistance and support. Given the views expressed, it announced on 31 January that it will continue to consider options for assistance and support alongside the fiscal impacts.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what the Government's policy is on transitional arrangements for financial service providers to minimise disruption to financial markets during and after the process of the UK leaving the EU.
Answered by Simon Kirby
The Government is working to deliver the best possible exit from the European Union. As the Prime Minister has said, we will not give a running commentary on the negotiations or our position.