Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people who have been affected by the introduction of the high income child benefit charge.
Answered by Elizabeth Truss
The High Income Child Benefit Charge came into force in January 2013 to help reduce the deficit and target support at those who need it most.
It is a tax charge that applies to anyone with an adjusted net income over £50,000 who claims Child Benefit or whose partner claims it. The charge is tapered, increasing gradually for taxpayers with incomes between £50,000 and £60,000.
For families where an individual has income over £60,000, the Child Benefit recipient can choose to either keep receiving Child Benefit payments and the highest earner pays the charge, or opt out of Child Benefit payments and not have to pay the charge.
Around 1.1 million families are in scope of the charge, and over 0.5 million have opted out of receiving Child Benefit payments.
The Government has no plans to abolish the High Income Child Benefit Charge, but keeps all policies under review.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government plans to abolish the high income child benefit tax charge.
Answered by Elizabeth Truss
The High Income Child Benefit Charge came into force in January 2013 to help reduce the deficit and target support at those who need it most.
It is a tax charge that applies to anyone with an adjusted net income over £50,000 who claims Child Benefit or whose partner claims it. The charge is tapered, increasing gradually for taxpayers with incomes between £50,000 and £60,000.
For families where an individual has income over £60,000, the Child Benefit recipient can choose to either keep receiving Child Benefit payments and the highest earner pays the charge, or opt out of Child Benefit payments and not have to pay the charge.
Around 1.1 million families are in scope of the charge, and over 0.5 million have opted out of receiving Child Benefit payments.
The Government has no plans to abolish the High Income Child Benefit Charge, but keeps all policies under review.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department provides financial assistance for HMRC to help local businesses run (a) the small self-administered scheme and (b) other schemes.
Answered by Mel Stride - Secretary of State for Work and Pensions
This government has always provided HMRC with the resources it needs to carry out its responsibilities. At the 2015 Spending Review, the government invested £1.3 billion to transform HMRC to make it quicker and easier for customers to deal with HMRC.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department provides financial assistance for HMRC to help local businesses run (a) the small self-administered scheme and (b) other schemes.
Answered by Mel Stride - Secretary of State for Work and Pensions
This government has always provided HMRC with the resources it needs to carry out its responsibilities. At the 2015 Spending Review, the government invested £1.3 billion to transform HMRC to make it quicker and easier for customers to deal with HMRC.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he has made an assessment of the potential increase in demand on the court system as a result of the deadline for making PPI claims via the Financial Ombudsman; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Financial Conduct Authority (FCA)’s decision to set a deadline for mis-sold Payment Protection Insurance (PPI) was announced in August 2017, and gives consumers two years to make a claim. The government is confident in the FCA’s approach to handling mis-sold PPI and the deadline was set by the FCA in their role as an independent regulator. As this was an FCA decision and not legislation, the Chancellor has not made an assessment on the impacts on the court system resulting from the deadline.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the estimated £70 billion in unpaid compensation for the mis-selling of payment protection insurance, if he will review the deadline for making a compensation claim.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Financial Conduct Authority (FCA)’s decision to set a deadline for mis-sold Payment Protection Insurance (PPI) was announced in August 2017, and gives consumers two years to make a claim. The government is confident in the FCA’s approach to handling mis-sold PPI and the deadline was set by the FCA in their role as an independent regulator. For this reason, the Chancellor is unable to review the deadline.
The deadline was set to prompt consumers to complain or check whether they had PPI. It is intended to help consumers get redress sooner, improve the efficiency of PPI complaints handling, and bring the PPI issue to an orderly conclusion to rebuild trust in the retail banking sector.
The FCA will write to Laura Smith MP to set out their position in more detail.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the reasons for the time taken for HMRC to notify people affected by the high-income child benefit charge of the money to be repaid.
Answered by Elizabeth Truss
The High Income Child Benefit Charge (HICBC) was introduced to ensure that support is targeted at those who need it most. It applies to anyone with an income over £50,000 who claims Child Benefit, or whose partner claims Child Benefit. The tax charge increases gradually for taxpayers with incomes between £50,000 and £60,000.
Families in which at least one taxpayer has an income over £60,000 can choose not to receive the Child Benefit, which means that they do not have to pay the tax charge at all. Those who continue to receive Child Benefit must register for Self Assessment to declare their Child Benefit payments and pay the tax charge through their tax return. HM Revenue and Customs (HMRC) encourages customers to contact it straightaway to pay the tax charge and the vast majority do so.
Information on HICBC widely available, including in packs for new parents telling them how to claim Child Benefit, as well as on the Child Benefit claim form itself. Guidance is also available online on gov.uk.
HMRC has a duty to apply tax legislation fairly and in an even-handed way, and takes every opportunity to make individuals aware of their responsibilities, including notifying of any taxes due.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the implications for his policies on public service pensions of the judgment in relation to Mcloud v Lord Chancellor and Secretary of State for Justice.
Answered by Elizabeth Truss
The Government is disappointed with the ruling of the Employment Appeal Tribunal in McCloud v. Lord Chancellor and Secretary of State for Justice and has appealed the judgment to the Court of Appeal.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when he plans to launch the Government's public consultation into the VAT registration threshold.
Answered by Mel Stride - Secretary of State for Work and Pensions
As announced at Autumn Budget 2017, the Government will publish a consultation on the VAT registration threshold in 2018.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he plans to bring forward legislative proposals for a total cost cap on credit cards of 100 per cent of the original sum borrowed.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The regulation of consumer credit, including credit cards, is a matter for the Financial Conduct Authority (FCA). The Government has given the FCA strong powers to protect consumers, including the power to cap all forms of consumer credit, and the FCA can do so if it thinks it is necessary to protect consumers.
The Government welcomes the FCA’s extensive Credit Card Market Study which identified concerns about persistent credit card debt. The FCA is consulting on remedies, which include encouraging customers to repay more quickly; earlier identification of customers at risk of financial difficulty; and help for customers in persistent debt with escalating measures at 18, 28, and 36 months. The FCA’s proposals also include a voluntary industry agreement to give customers more control over credit limit increases.
The FCA is not proposing a price cap as it considers that its proposals are more likely to address the consumer harm it has identified. The Government will continue to work with the FCA to ensure that customers are treated fairly.