Asked by: Andrew Rosindell (Conservative - Romford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate his Department has made of the number of people who will become bankrupt as a result of the (a) loan charge and (b) associated activity.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HM Revenue and Customs (HMRC) only ever considers insolvency as a last resort. Anyone who is worried about being able to pay what they owe should contact HMRC, who may be able to agree an instalment arrangement based on the individual’s financial circumstances. There is no maximum length for these arrangements.
Where people are facing insolvency, HMRC is not always the only creditor. Some individuals are declared bankrupt as a result of a non-HMRC debt and some individuals may choose to enter insolvency themselves based on their overall financial position. To date, HMRC has not initiated insolvency proceedings against any taxpayer solely for a Loan Charge debt.
As set out in the answer to PQ 17136, since 2022, HMRC has issued around 2,700 decisions under s.684(7A)(b) of the Income Tax (Earnings and Pensions) Act 2003 to disguised remuneration scheme users.
Asked by: Andrew Rosindell (Conservative - Romford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people have been issued section 684 notices by HMRC in relation to disguised remuneration schemes in the last 12 months.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HM Revenue and Customs (HMRC) only ever considers insolvency as a last resort. Anyone who is worried about being able to pay what they owe should contact HMRC, who may be able to agree an instalment arrangement based on the individual’s financial circumstances. There is no maximum length for these arrangements.
Where people are facing insolvency, HMRC is not always the only creditor. Some individuals are declared bankrupt as a result of a non-HMRC debt and some individuals may choose to enter insolvency themselves based on their overall financial position. To date, HMRC has not initiated insolvency proceedings against any taxpayer solely for a Loan Charge debt.
As set out in the answer to PQ 17136, since 2022, HMRC has issued around 2,700 decisions under s.684(7A)(b) of the Income Tax (Earnings and Pensions) Act 2003 to disguised remuneration scheme users.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 21 March 2024 to Question 19192 on Tax Avoidance, whether it is his Department's policy to cease recovery of any liabilities incurred before December 2010 in cases where a taxpayer has not received an update for a period of 12 months or more from the initial date of an open enquiry or assessment.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010. The Government accepted this recommendation.
Lord Morse was also clear that, for years before this date, where there is an open enquiry or assessment under appeal, HM Revenue and Customs (HMRC) should still have the ability to pursue the tax due under the existing rules. HMRC has proceeded on this basis and it is its policy to collect tax where it has the ability to do so.
As part of its overall compliance processes and its commitment to update taxpayers at least annually, all of these taxpayers should have received correspondence from HMRC in the last 12 months.
When HMRC opens an enquiry, the information sheet provided includes information about a taxpayer’s right to apply to the First Tier Tribunal for the enquiry to be closed. One of the grounds for making such an application is where there has been an excessive delay during which a taxpayer has not received any communication from HMRC.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 March 2024 to Question 17136 on Tax Avoidance, whether it is HMRC’s policy to seek to recover tax due for liabilities incurred before December 2010, where a taxpayer has not received correspondence relating to an open compliance check for longer than 12 months.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010. The Government accepted this recommendation.
However, Lord Morse was also clear that, for years before this date, where there is an open enquiry or assessment under appeal HM Revenue and Customs (HMRC) should still have the ability to pursue the tax due under the existing rules. HMRC has proceeded on this basis.
HMRC continues to work with and support taxpayers to resolve all outstanding enquiries and assessments relating to their use of disguised remuneration (DR) loans, in accordance with their published DR settlement terms and HMRC’s Litigation and Settlement Strategy
As part of its overall compliance processes and its commitment to update taxpayers at least annually, all of these taxpayers should have received correspondence from HMRC in the last 12 months.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of the amount and proportion of tax identified by HMRC as being avoided through disguised remuneration schemes that will be paid by people who (a) recommended, (b) promoted and (c) operated such schemes in each of the next five years.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
I refer the hon. Member for Portsmouth South to the answer given on 20 March to Question UIN 18112
Asked by: Emily Thornberry (Labour - Islington South and Finsbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what was the value of civil penalties (a) imposed and (b) collected as a result of HMRC's criminal investigations into tax avoidance and evasion in each financial year between 2010-11 and 2023-24; and what was the value of civil penalties (a) imposed and (b) collected for the avoidance and evasion of (i) income tax, (ii) national insurance contributions, (iii) VAT, (iv) excise duties and (v) corporation tax in each of those years.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Where data is already available via GOV.UK, HMRC have provided links below.
HMRC do not routinely issue civil penalties as a direct result of criminal investigations, so do not hold the requested data.
Prosecutions, convictions and acquittals:
2019-2020
2020-21 and 2021-22
https://assets.publishing.service.gov.uk/media/630f50178fa8f54491def8ce/HMRC_quarterly_performance_data_table_Q4_2021_to_2022.xlsx
2022-23
Total number of individuals charged:
2020/21 and 2021/22:
2022/23:
There has been one Deferred Prosecution Agreement:
https://www.cps.gov.uk/cps/news/first-ever-cps-deferred-prosecution-agreement-ps615-million
Asked by: Emily Thornberry (Labour - Islington South and Finsbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many Deferred Prosecution Agreements have been reached as a result of HMRC's criminal investigations into tax avoidance and evasion between 1 January 2014 and 13 March 2024; and what is the value of financial penalties from those agreements.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Where data is already available via GOV.UK, HMRC have provided links below.
HMRC do not routinely issue civil penalties as a direct result of criminal investigations, so do not hold the requested data.
Prosecutions, convictions and acquittals:
2019-2020
2020-21 and 2021-22
https://assets.publishing.service.gov.uk/media/630f50178fa8f54491def8ce/HMRC_quarterly_performance_data_table_Q4_2021_to_2022.xlsx
2022-23
Total number of individuals charged:
2020/21 and 2021/22:
2022/23:
There has been one Deferred Prosecution Agreement:
https://www.cps.gov.uk/cps/news/first-ever-cps-deferred-prosecution-agreement-ps615-million
Asked by: Emily Thornberry (Labour - Islington South and Finsbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Answer of 6 September 2017 to Question 6732 on Taxation: Prosecutions, how many prosecutions resulted from HMRC's criminal investigations into tax avoidance and evasion in the financial year (a) 2017-18, (b) 2018-19, (c) 2019-20, (d) 2020-21, (e) 2021-22, (f) 2022-23 and (g) 2023-24; and how many of those prosecutions resulted in (i) convictions and (ii) acquittals in each year.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Where data is already available via GOV.UK, HMRC have provided links below.
HMRC do not routinely issue civil penalties as a direct result of criminal investigations, so do not hold the requested data.
Prosecutions, convictions and acquittals:
2019-2020
2020-21 and 2021-22
https://assets.publishing.service.gov.uk/media/630f50178fa8f54491def8ce/HMRC_quarterly_performance_data_table_Q4_2021_to_2022.xlsx
2022-23
Total number of individuals charged:
2020/21 and 2021/22:
2022/23:
There has been one Deferred Prosecution Agreement:
https://www.cps.gov.uk/cps/news/first-ever-cps-deferred-prosecution-agreement-ps615-million
Asked by: Emily Thornberry (Labour - Islington South and Finsbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many (a) prosecutions and (b) convictions have resulted from HMRC's criminal investigations into avoidance and evasion of (i) income tax, (ii) national insurance contributions, (iii) VAT, (iv) excise duties and (v) corporation tax in each financial year between 2019-20 and 2023-24.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Where data is already available via GOV.UK, HMRC have provided links below.
HMRC do not routinely issue civil penalties as a direct result of criminal investigations, so do not hold the requested data.
Prosecutions, convictions and acquittals:
2019-2020
2020-21 and 2021-22
https://assets.publishing.service.gov.uk/media/630f50178fa8f54491def8ce/HMRC_quarterly_performance_data_table_Q4_2021_to_2022.xlsx
2022-23
Total number of individuals charged:
2020/21 and 2021/22:
2022/23:
There has been one Deferred Prosecution Agreement:
https://www.cps.gov.uk/cps/news/first-ever-cps-deferred-prosecution-agreement-ps615-million
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much of the tax HMRC identified through disguised remuneration schemes was paid by those who (a) recommended, (b) promoted and (c) operated these schemes in each of the last five years.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
HM Revenue and Customs (HMRC) has taken action to tackle the promoters of avoidance schemes, implementing a wide range of actions to disrupt their activities and supply chains, including publishing the details of promoters.
However, liability for the tax is always that of the individual and there is no legal mechanism to transfer disguised remuneration liabilities from the scheme users to the promoters.
As of 29 February 2024, HMRC has published the details of 70 tax avoidance schemes, 65 promoters and 29 connected persons, such as company directors and those individuals in control of the promoting entity.
HMRC has also issued over 20 stop notices to promoters and published details of 16 of these arrangements. Publishing this information supports taxpayers in identifying tax avoidance schemes so they can steer clear of or exit them.
The list of details of tax avoidance schemes, promoters, connected persons and stop notices currently published online can be found at:
https://www.gov.uk/government/publications/named-tax-avoidance-schemes-promoters-enablers-and-suppliers