Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC has received legal advice on collecting loan charge refunds from (a) employees and (b) employers.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC’s lawyers considered all relevant legal points when providing the advice that informed HMRC’s approach to collecting disguised remuneration tax liabilities including the Loan Charge from employers and, where appropriate, employees.
Asked by: Julian Knight (Independent - Solihull)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether His Majesty's Revenue and Customs have made ex gratia payments to whistle-blowers for information about individuals' tax affairs.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
There are times when it is appropriate for HMRC to make payments to individuals in return for providing information that helps tackle tax avoidance and evasion.
Such payments are discretionary and are based on the quality of the information provided, the extent and value to which the information contributed to HMRC assigned matters, and what is achieved as a result.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the number of (a) promoters and (b) operators of schemes subject to the loan charge who have been prosecuted for (i) promoting and (ii) operating those schemes, as of 8 September 2023.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
I refer the hon. Member to the answer I gave on 17 July 2023 to Question UIN 192681
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the number of people who (a) have and (b) will become financially insolvent as a result of the Loan Charge.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC cannot provide an estimate for the number of people subject to the Loan Charge who have become insolvent as they could have become insolvent for many reasons.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people HM Revenue and Customs was seeking loan charge payments from in relation to the tax years before April 2010, as of 8 September 2023.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
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.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish guidance issued by his Department on issuing loan charge refunds following the Morse Review in 2018.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
I refer the Honourable Member to the answer that was given on 27 April 2023 to the question UIN 182076.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC has taken to issue loan charge refunds following the Morse Review 2018.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
I refer the Honourable Member to the answer that was given on 27 April 2023 to the question UIN 182076.
Asked by: Claudia Webbe (Independent - Leicester East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the level of tax (a) evasion and (b) avoidance in each of the last four years.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HM Revenue and Customs (HMRC) estimates the size of the tax gap, which is the difference between the amount of tax that should theoretically be paid to HMRC and the amount that is actually paid. The latest tax gap estimate for 2021-2022 is a record low of 4.8 per cent of total theoretical tax liabilities. The tax gap statistics are published annually and are available at: https://www.gov.uk/government/statistics/measuring-tax-gaps.
Asked by: Andrew Rosindell (Conservative - Romford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the number of people in Romford constituency that have been affected by the Loan Charge scheme.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Information on the number of individuals subject to the Loan Charge is not held at constituency, borough or regional level.
In April 2023, HMRC published an updated issue briefing on disguised remuneration and the loan charge. The issue briefing contains information at UK level and is available on GOV.UK here:
Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 25 October 2021 to Question 62867 on Tax Avoidance: Prosecutions, if he will provide details of the people who were prosecuted for offences relating to the Loan Charge.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Promotion or operation of mass marketed tax avoidance schemes is not in, or of itself, a criminal offence. However, there are a range of offences which might be committed by those who promote tax avoidance schemes or advise on their use.
On that basis, to date, while there have been no prosecutions of individuals related to schemes subject to the Loan Charge, a number of individuals are currently under criminal investigation by HMRC for offences linked to schemes subject to the Loan Charge.
In addition to schemes subject to the Loan Charge, since 1 April 2016, more than 20 individuals have been convicted for offences relating to arrangements which have been promoted and marketed as tax avoidance. These have resulted in over 100 years of custodial sentences, the majority of which relate to promoters.
Prosecutions are only one type of intervention available to HMRC where they identify concerns.