Asked by: Kevin Brennan (Labour - Cardiff West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations he has received on maintaining the temporary VAT rate of 5 per cent beyond 31 March 2021.
Answered by Jesse Norman
The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and is due to run until 31 March 2021.
This policy will cost over £2 billion and is a temporary measure. The Government keeps all taxes under review, and all stakeholder views are carefully considered. Any future decisions on tax policy will be made at Budget.
The Government has announced a significant support package to help businesses from a range of sectors through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the Government-backed loan schemes.
Asked by: Kevin Brennan (Labour - Cardiff West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations he has received on extending the Coronavirus Job Retention Scheme beyond 30 April 2021.
Answered by Jesse Norman
The Government has provided a comprehensive economic response that is one of the most generous globally, including very substantial steps to protect jobs. The Coronavirus Job Retention Scheme (CJRS) has helped to pay the wages of people in 9.9 million jobs across the country, providing £46.4bn worth of support as of 13 December. The Self-Employment Income Support Scheme (SEISS) has received claims from 2.7 million self-employed workers, amounting to £13.7bn as of 13 December.
The Government will set out the next phase of the plan to tackle the virus and support jobs at Budget 2021.
Asked by: Kevin Brennan (Labour - Cardiff West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations he has received on extending the self-assessment tax deadline for people who have been ineligible for financial support during the covid-19 outbreak.
Answered by Jesse Norman
In recent weeks the Government has received representations on extending the Self-Assessment deadline date. These have come from professional bodies representing tax agents. They have focused on the general Self-Assessment population and tax agents rather than those ineligible for financial support during the COVID-19 outbreak.
The Government is aware that many taxpayers may struggle to meet their Self-Assessment obligations this year due to the impacts of COVID-19. While taxpayers were encouraged to file their tax return by 31 January 2021 if possible, anyone who could not file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February 2021.
Taxpayers’ other Self-Assessment obligations are unchanged, including the obligation to pay their bill by 31 January 2021.
Anyone having difficulty paying their tax bill, whether they have received financial support from the Government or not, can use HMRC’s Time to Pay (TTP) service once they have filed their return.
Asked by: Kevin Brennan (Labour - Cardiff West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations he has received on the potential merits of waiving the January 2021 self-assessment tax bill for those who have been ineligible for financial support during the covid-19 outbreak.
Answered by Jesse Norman
The Government is aware that many taxpayers, including those who may have been ineligible for financial support during the COVID-19 outbreak, may have difficulty in meeting the Self-Assessment payment deadline this year due to the impacts of COVID-19.
The Government has no plans to waive tax bills for taxpayers. However, HMRC are committed to helping all taxpayers pay their tax liabilities. Anyone having difficulty paying their tax bill by 31 January 2021, whether they have received financial support from the Government or not, can use HMRC’s automated self-serve Time to Pay (TTP) online service once they have filed their return.
For liabilities up to £30,000, taxpayers can set up an instalment arrangement online without having to contact HMRC beforehand. TTP is still available for taxpayers with liabilities exceeding £30,000, but they must contact HMRC to make the necessary arrangements.
Asked by: Kevin Brennan (Labour - Cardiff West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to his Answer of 19 May to Question 45967, if he will estimate the start and leaving dates for a proportion of employments referred to in his answer in order to calculate complete and full figures of people who were due to start a job after 28 February 2020 and who are not covered by the Coronavirus Job Retention Scheme.
Answered by Jesse Norman
It has not been possible to provide an answer based on complete data in the time available. HMRC are continuing to explore the data and analysis it is possible to provide on the Coronavirus Job Retention Scheme and on its delivery.Asked by: Kevin Brennan (Labour - Cardiff West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what additional financial support he plans to make available for self-employed workers in the creative industries during the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government has announced unprecedented support for business and workers to protect them against the current economic emergency including almost £300 billion of guarantees – equivalent to 15% of UK GDP.
Help for self-employed workers in sectors like the creative industry has been provided through the Self-Employment Income Support Scheme (SEISS). SEISS provides grants to those who are self-employed, or members of partnerships, worth 80% of their trading profits/partnership trading profits, up to a maximum of £2,500 per month. The value of the grant is based on a 3-year average of trading/partnership trading profits, from the tax years 2016-17 to 2018-19. SEISS is available to those who generate majority of their income from self -employment and who earn less than £50k. Some 95% of people who are mainly self-employed could benefit from SEISS. The scheme went live on 13 May.
In addition, to support those on low incomes at this time, the Government has announced a package of temporary welfare measures, including:
Details of the range of support for individuals affected by COVID-19 is available at: https://www.gov.uk/government/publications/support-for-those-affected-by-covid-19/support-for-those-affected-by-covid-19.
Asked by: Kevin Brennan (Labour - Cardiff West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to calculate levels of covid-19 related grants to the self-employed on the basis of turnover rather than profits.
Answered by Jesse Norman
The Self-Employment Income Support Scheme (SEISS) allows eligible individuals to claim a taxable grant worth 80 per cent of their average monthly trading profits, paid out in a single instalment covering three months, and capped at £7,500 in total. This scheme is intended to support individuals who rely primarily on their trading profits from self-employment and who have been adversely affected by COVID-19.
The self-employed are a very diverse population. They have a wide mix of turnover and profits, with monthly and annual variations even in normal times. The SEISS is based on trading profits, as providing support on the basis of an individual’s past turnover would be unfair. For example, an individual could have had a high turnover, but have made a loss. A turnover-based system would provide more support to such an individual than to an individual with a lower turnover who made a profit.
More information about how income and trading profits are calculated can be found at www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme.
Asked by: Kevin Brennan (Labour - Cardiff West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on the finances of self-employed people working in the creative industries of calculating levels of covid-19 related grants on the basis of profits rather than turnover.
Answered by Jesse Norman
The Self-Employment Income Support Scheme (SEISS) allows eligible individuals to claim a taxable grant worth 80 per cent of their average monthly trading profits, paid out in a single instalment covering three months, and capped at £7,500 in total. This scheme is intended to support individuals who rely primarily on their trading profits from self-employment and who have been adversely affected by COVID-19.
The self-employed are a very diverse population. They have a wide mix of turnover and profits, with monthly and annual variations even in normal times. The SEISS is based on trading profits, as providing support on the basis of an individual’s past turnover would be unfair. For example, an individual could have had a high turnover, but have made a loss. A turnover-based system would provide more support to such an individual than to an individual with a lower turnover who made a profit.
More information about how income and trading profits are calculated can be found at www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme.
Asked by: Kevin Brennan (Labour - Cardiff West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what equality impact assessment his Department has undertaken in line with the Public Sector Equality Duty of the Self-Employment Income Support Scheme rules in respect of women and new mothers.
Answered by Jesse Norman
HM Treasury takes care to pay due regard to the equality impacts of its policy decisions relating to the COVID-19 outbreak, in line with all legal requirements and the Government’s commitment to promoting equality. There are internal procedural requirements and support in place for ensuring that such considerations inform decisions taken by ministers.
Asked by: Kevin Brennan (Labour - Cardiff West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what equality impact assessments his Department has undertaken of the Self-Employment Income Support Scheme on people with protected characteristics under the Equality Act 2010.
Answered by Jesse Norman
HM Treasury takes care to pay due regard to the equality impacts of its policy decisions relating to the COVID-19 outbreak, in line with all legal requirements and the Government’s commitment to promoting equality. There are internal procedural requirements and support in place for ensuring that such considerations inform decisions taken by ministers.