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, whom he defines as (a) employers and (b) individuals.
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.
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, what estimate he has made of the number of promoters and providers of disguised remuneration schemes he expects to be (a) pursued or investigated and (b) penalised or prosecuted by HMRC.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC takes tackling promoters of avoidance schemes seriously, but does not currently categorise information in such a way as to identify disguised remuneration schemes specifically.
In recent years, HMRC has been investigating over 100 promoters and others involved in avoidance, including disguised remuneration arrangements. In the last year, HMRC has taken litigation action against 5 scheme promoters for failure to disclose under Disclosure of Tax Avoidance Schemes with others deciding to disclose to avoid litigation. Further cases will be litigated in the year ahead.
HMRC has used its powers under the Promoters of Tax Avoidance Schemes to challenge promoters and others. HMRC has also made three successful complaints to the Advertising Standards Authority about misleading advertising; two of which relate to disguised remuneration schemes.
HMRC will also consider criminal investigation and make referrals to prosecuting authorities, where appropriate. Since the formation of HMRC’s Fraud Investigation Service on 1 April 2016 more than 15 individuals have been convicted for offences relating to the promotion and operation of marketed tax avoidance schemes and sentenced to over 95 years custodial with an additional 4 years suspended sentences being ordered, additional matters are the subject of ongoing enquiries.
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, how many promoters and providers of disguised remuneration schemes have been (a) pursued or investigated and (b) penalised or prosecuted by HMRC.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC takes tackling promoters of avoidance schemes seriously, but does not currently categorise information in such a way as to identify disguised remuneration schemes specifically.
In recent years, HMRC has been investigating over 100 promoters and others involved in avoidance, including disguised remuneration arrangements. In the last year, HMRC has taken litigation action against 5 scheme promoters for failure to disclose under Disclosure of Tax Avoidance Schemes with others deciding to disclose to avoid litigation. Further cases will be litigated in the year ahead.
HMRC has used its powers under the Promoters of Tax Avoidance Schemes to challenge promoters and others. HMRC has also made three successful complaints to the Advertising Standards Authority about misleading advertising; two of which relate to disguised remuneration schemes.
HMRC will also consider criminal investigation and make referrals to prosecuting authorities, where appropriate. Since the formation of HMRC’s Fraud Investigation Service on 1 April 2016 more than 15 individuals have been convicted for offences relating to the promotion and operation of marketed tax avoidance schemes and sentenced to over 95 years custodial with an additional 4 years suspended sentences being ordered, additional matters are the subject of ongoing enquiries.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of the £3.2 billion that the Loan Charge 2019 is estimated to raise for the public purse by 2021 is projected to be recovered from scheme providers.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Government estimates that £3.2 billion from the loan charge policy will be collected from scheme users who can be employers or individuals. 75% of the estimated amount is expected from employers and 25% from individuals.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements on disguised remuneration schemes with employers and individuals of over 650 million pounds. More than 90% of this amount was collected from employers, with less than 10% from individuals. If scheme users repay the loan or agree a settlement for the tax that they owe with HMRC, they will not face the charge.
Providers or promoters of tax avoidance schemes are not liable for the loan charge unless they themselves have used arrangements caught by the legislation. HMRC pursues those who promote or enable tax avoidance schemes to ensure that nobody profits from selling avoidance.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer,what proportion of the £3.2 billion that the Loan Charge 2019 is estimated to raise for the public purse by 2021 is projected to be recovered from scheme users.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Government estimates that £3.2 billion from the loan charge policy will be collected from scheme users who can be employers or individuals. 75% of the estimated amount is expected from employers and 25% from individuals.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements on disguised remuneration schemes with employers and individuals of over 650 million pounds. More than 90% of this amount was collected from employers, with less than 10% from individuals. If scheme users repay the loan or agree a settlement for the tax that they owe with HMRC, they will not face the charge.
Providers or promoters of tax avoidance schemes are not liable for the loan charge unless they themselves have used arrangements caught by the legislation. HMRC pursues those who promote or enable tax avoidance schemes to ensure that nobody profits from selling avoidance.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much money has been recovered for the public purse from scheme providers as a result of settlements relating to the Loan Charge 2019.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Government estimates that £3.2 billion from the loan charge policy will be collected from scheme users who can be employers or individuals. 75% of the estimated amount is expected from employers and 25% from individuals.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements on disguised remuneration schemes with employers and individuals of over 650 million pounds. More than 90% of this amount was collected from employers, with less than 10% from individuals. If scheme users repay the loan or agree a settlement for the tax that they owe with HMRC, they will not face the charge.
Providers or promoters of tax avoidance schemes are not liable for the loan charge unless they themselves have used arrangements caught by the legislation. HMRC pursues those who promote or enable tax avoidance schemes to ensure that nobody profits from selling avoidance.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much money has been recovered for the public purse from scheme users as a result of settlements relating to the Loan Charge 2019.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Government estimates that £3.2 billion from the loan charge policy will be collected from scheme users who can be employers or individuals. 75% of the estimated amount is expected from employers and 25% from individuals.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements on disguised remuneration schemes with employers and individuals of over 650 million pounds. More than 90% of this amount was collected from employers, with less than 10% from individuals. If scheme users repay the loan or agree a settlement for the tax that they owe with HMRC, they will not face the charge.
Providers or promoters of tax avoidance schemes are not liable for the loan charge unless they themselves have used arrangements caught by the legislation. HMRC pursues those who promote or enable tax avoidance schemes to ensure that nobody profits from selling avoidance.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress he has made on implementing the findings of the Environment, Food and Rural Affairs; Environmental Audit; Health and Social Care; and Transport Committees joint report, Improving air quality, published on 15 March 2018, HC 433, in relation to aligning HM Treasury policies with clean air objectives.
Answered by Robert Jenrick
As set out in the government’s response to the Improving Air Quality report, HM Treasury sees tax and spending policy as playing an important role in tackling climate change and reducing air pollution. For spending measures, HM Treasury scrutinises departments’ application of the Green Book’s guidance, including air quality impacts, on an ongoing basis.
With regard to incorporating air quality pollutants into vehicle taxation, laboratory tests cannot currently measure NOx to a level of accuracy comparable with real-world driving emissions. Therefore, the VED system is based on CO2 only, as this allows for a banded system to be implemented. At Autumn Budget 2017, the government announced a temporary levy on new diesel cars to encourage manufacturers to bring forward the next generation clean diesels.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on consumers of the increase in company car tax since 2013.
Answered by Robert Jenrick
Where an employer provides a company car to their employee and that car is available for private travel, the company car tax applies. This reflects the taxable benefit provided to an employee as part of their remuneration package.
Consumers may choose zero and ultra low emission models which attract a significantly reduced tax liability compared to conventionally fuelled alternatives.
Asked by: Nigel Evans (Conservative - Ribble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on (a) jobs and (b) investment in the brewing and pubs sector of the beer duty freeze announced in the Autumn Budget 2017.
Answered by Robert Jenrick
Though we have made no such assessment of the beer duty freeze announced at Autumn Budget 2017 on jobs and investment, this government remains clear in our support for the brewing and pubs sector and the important contribution it makes to employment and community life.