Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how HMRC determines whether a company is based in the UK in terms of eligibility for covid-19-related business support; and whether companies which have UK offices but are incorporated in the Cayman Islands are eligible for that support.

The Government support package is targeted at the businesses and individuals who most need support, while ensuring measures are accessible, certain and introduced in a timely manner to protect livelihoods.

HMRC administer the Coronavirus Job Retention Scheme (CJRS), Coronavirus Statutory Sick Pay Rebate Scheme (CSSPRS) and Self-Employment Income Support Scheme (SEISS). The eligibility criteria vary between the schemes.

To claim under CJRS, the employer must have created and started a PAYE payroll scheme on or before 19 March 2020, be enrolled for PAYE online and have a UK bank account. They can only claim for furloughed employees where a Real Time Information (RTI) submission notifying payment in respect of that employee to HMRC was made on or before 19 March 2020. From 1 July, they can only claim for employees that have been furloughed for at least three consecutive weeks any time between 1 March and 30 June.

To claim under the CSSPRS the employer must have fewer than 250 employees before February 2020, be enrolled in a PAYE payroll scheme, and have an employee that was off work due to coronavirus, self-isolating, or shielding.

Self-employed individuals, including members of partnerships, are eligible for the SEISS if they have submitted their Income Tax Self-Assessment tax return for the tax year 2018-19, continued to trade, and have been adversely affected by COVID-19. To qualify, their self-employed trading profits must be no more than £50,000 and at least equal to their non-trading income.

HMRC are also responsible for VAT and Income Tax Self Assessment, for which certain payments have been deferred. These are general measures which apply to all taxpayers liable to pay the taxes in question.

The schemes are designed to support both British businesses and workers in Britain who pay their taxes and would otherwise lose their jobs.