Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much of the £650 million that HMRC has collected from employers since 2016 in relation to disguised remuneration schemes has come from (a) PAYE and national insurance contributions on loans made to employees under an employment benefit trust scheme and (b) penalties and fines due to the failure of employers to register those schemes under the disclosure of tax avoidance schemes process.
Answered by Mel Stride - Secretary of State for Work and Pensions
Disguised Remuneration (DR) schemes are contrived arrangements that pay loans in place of ordinary remuneration with the sole purpose of avoiding income tax and National Insurance contributions.
HMRC is working hard to help individuals get out of tax avoidance for good and is encouraging anyone who is concerned about their ability to pay what they owe, to contact them as soon as possible to discuss their position. In November 2017, HMRC set up a dedicated helpline for those wanting to settle their avoidance scheme use, and discuss payment options. HMRC will work with all individuals to reach a manageable and sustainable payment plan wherever possible.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has now agreed settlements on disguised remuneration schemes with employers and individuals totalling over £1 billion. Pay As You Earn (PAYE) liabilities fall on the employer in the first instance. The charge on DR loans does not change this principle and the employee will only be liable where the amount cannot reasonably be collected from the employer, such as where the employer is offshore or no longer exists. Around 85% of the settlement yield since 2016 is from employers, with less than 15% from individuals.
HMRC has also introduced a simplified process for those who choose to settle their use of DR avoidance schemes before the loan charge arises. DR scheme users who currently have an income of less than £50,000 and are no longer engaging in tax avoidance can automatically agree a payment plan of up to five years without the need to give HMRC any information about their income and assets. This arrangement has been extended to 7 years for scheme users who have an income of less than £30,000.
Those who consider they need more than five (or seven) years to pay what they owe or who earn £50,000 or more should still come forward and talk to HMRC about payment terms. There are no defined minimum or maximum time periods for payment arrangements and HMRC can tailor any payment plan to their individual financial circumstances.
The Government has introduced comprehensive double taxation provisions to ensure that no individual will pay income tax twice on the same income. More information is included in the DR Technical Note published by HMRC on 5 December 2016. Where employers have paid the income tax and NICs due on loans made through these schemes, the individual will not be liable to the loan charge.
Information on the proportion of employers who paid their employees through an Employer Benefit Trust (EBT) arrangements and have paid the PAYE and NICs due is not readily available and could only be provided at disproportionate cost.
A list of scheme providers that have paid taxes on loans given to individuals through an EBT scheme cannot be released because of HMRC’s duty of confidentiality.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of employers who paid employees through an employment benefit trust scheme have paid the PAYE contributions deemed due.
Answered by Mel Stride - Secretary of State for Work and Pensions
Disguised Remuneration (DR) schemes are contrived arrangements that pay loans in place of ordinary remuneration with the sole purpose of avoiding income tax and National Insurance contributions.
HMRC is working hard to help individuals get out of tax avoidance for good and is encouraging anyone who is concerned about their ability to pay what they owe, to contact them as soon as possible to discuss their position. In November 2017, HMRC set up a dedicated helpline for those wanting to settle their avoidance scheme use, and discuss payment options. HMRC will work with all individuals to reach a manageable and sustainable payment plan wherever possible.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has now agreed settlements on disguised remuneration schemes with employers and individuals totalling over £1 billion. Pay As You Earn (PAYE) liabilities fall on the employer in the first instance. The charge on DR loans does not change this principle and the employee will only be liable where the amount cannot reasonably be collected from the employer, such as where the employer is offshore or no longer exists. Around 85% of the settlement yield since 2016 is from employers, with less than 15% from individuals.
HMRC has also introduced a simplified process for those who choose to settle their use of DR avoidance schemes before the loan charge arises. DR scheme users who currently have an income of less than £50,000 and are no longer engaging in tax avoidance can automatically agree a payment plan of up to five years without the need to give HMRC any information about their income and assets. This arrangement has been extended to 7 years for scheme users who have an income of less than £30,000.
Those who consider they need more than five (or seven) years to pay what they owe or who earn £50,000 or more should still come forward and talk to HMRC about payment terms. There are no defined minimum or maximum time periods for payment arrangements and HMRC can tailor any payment plan to their individual financial circumstances.
The Government has introduced comprehensive double taxation provisions to ensure that no individual will pay income tax twice on the same income. More information is included in the DR Technical Note published by HMRC on 5 December 2016. Where employers have paid the income tax and NICs due on loans made through these schemes, the individual will not be liable to the loan charge.
Information on the proportion of employers who paid their employees through an Employer Benefit Trust (EBT) arrangements and have paid the PAYE and NICs due is not readily available and could only be provided at disproportionate cost.
A list of scheme providers that have paid taxes on loans given to individuals through an EBT scheme cannot be released because of HMRC’s duty of confidentiality.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Loan Charge 2019, whether employees will be exempt from paying taxes in relation to those loans in cases where employers have paid PAYE on loans given to their employees through an employment benefit trust scheme since 1999.
Answered by Mel Stride - Secretary of State for Work and Pensions
Disguised Remuneration (DR) schemes are contrived arrangements that pay loans in place of ordinary remuneration with the sole purpose of avoiding income tax and National Insurance contributions.
HMRC is working hard to help individuals get out of tax avoidance for good and is encouraging anyone who is concerned about their ability to pay what they owe, to contact them as soon as possible to discuss their position. In November 2017, HMRC set up a dedicated helpline for those wanting to settle their avoidance scheme use, and discuss payment options. HMRC will work with all individuals to reach a manageable and sustainable payment plan wherever possible.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has now agreed settlements on disguised remuneration schemes with employers and individuals totalling over £1 billion. Pay As You Earn (PAYE) liabilities fall on the employer in the first instance. The charge on DR loans does not change this principle and the employee will only be liable where the amount cannot reasonably be collected from the employer, such as where the employer is offshore or no longer exists. Around 85% of the settlement yield since 2016 is from employers, with less than 15% from individuals.
HMRC has also introduced a simplified process for those who choose to settle their use of DR avoidance schemes before the loan charge arises. DR scheme users who currently have an income of less than £50,000 and are no longer engaging in tax avoidance can automatically agree a payment plan of up to five years without the need to give HMRC any information about their income and assets. This arrangement has been extended to 7 years for scheme users who have an income of less than £30,000.
Those who consider they need more than five (or seven) years to pay what they owe or who earn £50,000 or more should still come forward and talk to HMRC about payment terms. There are no defined minimum or maximum time periods for payment arrangements and HMRC can tailor any payment plan to their individual financial circumstances.
The Government has introduced comprehensive double taxation provisions to ensure that no individual will pay income tax twice on the same income. More information is included in the DR Technical Note published by HMRC on 5 December 2016. Where employers have paid the income tax and NICs due on loans made through these schemes, the individual will not be liable to the loan charge.
Information on the proportion of employers who paid their employees through an Employer Benefit Trust (EBT) arrangements and have paid the PAYE and NICs due is not readily available and could only be provided at disproportionate cost.
A list of scheme providers that have paid taxes on loans given to individuals through an EBT scheme cannot be released because of HMRC’s duty of confidentiality.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Loan Charge 2019, whether he has published a list of scheme providers that have paid taxes on loans given to individuals through an employment benefit trust scheme since 1999.
Answered by Mel Stride - Secretary of State for Work and Pensions
Disguised Remuneration (DR) schemes are contrived arrangements that pay loans in place of ordinary remuneration with the sole purpose of avoiding income tax and National Insurance contributions.
HMRC is working hard to help individuals get out of tax avoidance for good and is encouraging anyone who is concerned about their ability to pay what they owe, to contact them as soon as possible to discuss their position. In November 2017, HMRC set up a dedicated helpline for those wanting to settle their avoidance scheme use, and discuss payment options. HMRC will work with all individuals to reach a manageable and sustainable payment plan wherever possible.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has now agreed settlements on disguised remuneration schemes with employers and individuals totalling over £1 billion. Pay As You Earn (PAYE) liabilities fall on the employer in the first instance. The charge on DR loans does not change this principle and the employee will only be liable where the amount cannot reasonably be collected from the employer, such as where the employer is offshore or no longer exists. Around 85% of the settlement yield since 2016 is from employers, with less than 15% from individuals.
HMRC has also introduced a simplified process for those who choose to settle their use of DR avoidance schemes before the loan charge arises. DR scheme users who currently have an income of less than £50,000 and are no longer engaging in tax avoidance can automatically agree a payment plan of up to five years without the need to give HMRC any information about their income and assets. This arrangement has been extended to 7 years for scheme users who have an income of less than £30,000.
Those who consider they need more than five (or seven) years to pay what they owe or who earn £50,000 or more should still come forward and talk to HMRC about payment terms. There are no defined minimum or maximum time periods for payment arrangements and HMRC can tailor any payment plan to their individual financial circumstances.
The Government has introduced comprehensive double taxation provisions to ensure that no individual will pay income tax twice on the same income. More information is included in the DR Technical Note published by HMRC on 5 December 2016. Where employers have paid the income tax and NICs due on loans made through these schemes, the individual will not be liable to the loan charge.
Information on the proportion of employers who paid their employees through an Employer Benefit Trust (EBT) arrangements and have paid the PAYE and NICs due is not readily available and could only be provided at disproportionate cost.
A list of scheme providers that have paid taxes on loans given to individuals through an EBT scheme cannot be released because of HMRC’s duty of confidentiality.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Loan Charge 2019, what safeguards his Department has put in place to prevent double taxation in cases where the taxes now due on employment benefit trust loans have already been collected from scheme providers.
Answered by Mel Stride - Secretary of State for Work and Pensions
Disguised Remuneration (DR) schemes are contrived arrangements that pay loans in place of ordinary remuneration with the sole purpose of avoiding income tax and National Insurance contributions.
HMRC is working hard to help individuals get out of tax avoidance for good and is encouraging anyone who is concerned about their ability to pay what they owe, to contact them as soon as possible to discuss their position. In November 2017, HMRC set up a dedicated helpline for those wanting to settle their avoidance scheme use, and discuss payment options. HMRC will work with all individuals to reach a manageable and sustainable payment plan wherever possible.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has now agreed settlements on disguised remuneration schemes with employers and individuals totalling over £1 billion. Pay As You Earn (PAYE) liabilities fall on the employer in the first instance. The charge on DR loans does not change this principle and the employee will only be liable where the amount cannot reasonably be collected from the employer, such as where the employer is offshore or no longer exists. Around 85% of the settlement yield since 2016 is from employers, with less than 15% from individuals.
HMRC has also introduced a simplified process for those who choose to settle their use of DR avoidance schemes before the loan charge arises. DR scheme users who currently have an income of less than £50,000 and are no longer engaging in tax avoidance can automatically agree a payment plan of up to five years without the need to give HMRC any information about their income and assets. This arrangement has been extended to 7 years for scheme users who have an income of less than £30,000.
Those who consider they need more than five (or seven) years to pay what they owe or who earn £50,000 or more should still come forward and talk to HMRC about payment terms. There are no defined minimum or maximum time periods for payment arrangements and HMRC can tailor any payment plan to their individual financial circumstances.
The Government has introduced comprehensive double taxation provisions to ensure that no individual will pay income tax twice on the same income. More information is included in the DR Technical Note published by HMRC on 5 December 2016. Where employers have paid the income tax and NICs due on loans made through these schemes, the individual will not be liable to the loan charge.
Information on the proportion of employers who paid their employees through an Employer Benefit Trust (EBT) arrangements and have paid the PAYE and NICs due is not readily available and could only be provided at disproportionate cost.
A list of scheme providers that have paid taxes on loans given to individuals through an EBT scheme cannot be released because of HMRC’s duty of confidentiality.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking to ensure the UK has the ability to train sufficient numbers of medical students for the NHS workforce.
Answered by Elizabeth Truss
The government is delivering on its commitment to roll out an extra 1,500 medical school places. Around 630 have taken up places on medical courses in September 2018, bringing the total intake for 2018/19 to 6,701 - the highest on record. A further 690 will be available to students in 2019/20 and the remaining 180 places will be available in 2020/21.
The NHS has established a national workforce group, which will look at the future medical workforce as part of delivering on the workforce aims set out in the Long-Term Plan. The NHS will publish a detailed workforce implementation plan in the Spring.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of funding additional domestic medical student places to meet NHS demand.
Answered by Elizabeth Truss
The government is delivering on its commitment to roll out an extra 1,500 medical school places. Around 630 have taken up places on medical courses in September 2018, bringing the total intake for 2018/19 to 6,701 - the highest on record. A further 690 will be available to students in 2019/20 and the remaining 180 places will be available in 2020/21.
The NHS has established a national workforce group, which will look at the future medical workforce as part of delivering on the workforce aims set out in the Long-Term Plan. The NHS will publish a detailed workforce implementation plan in the Spring.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions his Department has had with the Department of Health and Social Care on funding for additional domestic medical student places.
Answered by Elizabeth Truss
The government is delivering on its commitment to roll out an extra 1,500 medical school places. Around 630 have taken up places on medical courses in September 2018, bringing the total intake for 2018/19 to 6,701 - the highest on record. A further 690 will be available to students in 2019/20 and the remaining 180 places will be available in 2020/21.
The NHS has established a national workforce group, which will look at the future medical workforce as part of delivering on the workforce aims set out in the Long-Term Plan. The NHS will publish a detailed workforce implementation plan in the Spring.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the cost to the public purse of paying benefits to working parents whose children are living abroad in each of the last three years.
Answered by Elizabeth Truss
HMRC does not collect data on the entire benefits system. However, for Child Benefit and Child Tax Credit paid, which amounted to £11.7 billion and £20.9 billion in 2017-18 respectively, it is estimated that £35 million was paid for children resident in another EEA country. This consists of £20 million of Child Benefit and £15 million of Child Tax Credit.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 November 2018 to Questions 185525-8 on Tax Avoidance, (a) how many and (b) what proportion of the scheme users classified as employers are individuals who were paid through their own limited companies.
Answered by Mel Stride - Secretary of State for Work and Pensions
In the context of the legislation at S554A of ITEPA 2003, employers are those who have set up a disguised remuneration (DR) scheme and remunerated their staff or themselves through the DR scheme they have set up. Individuals are employees who are personally responsible for their tax arrangements because HMRC cannot reasonably collect the liability from the employer.
A breakdown of the number of DR users classified as employers who are individuals paid through their own limited companies is not available. However, the structure of this type of scheme and the costs involved with using one means that it is not likely to be an individual paying themselves through their own limited company.
HMRC are pursing employers who have used a DR scheme to pay their employees. So far, over 90% of the £650 million collected since Budget 2016 has been collected from employers.