Asked by: Bambos Charalambous (Labour - Enfield, Southgate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the effectiveness of HMRC in enforcing the agency regulations when collecting PAYE tax from agencies.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Agencies must deduct Income Tax and National Insurance Contributions (NICs) at source from payments of earnings to agency workers. HMRC’s processes for collecting any Income Tax and NICs due from agencies under Pay As You Earn (PAYE) are the same as those for other employers.
Where HMRC finds that a UK agency has failed to account for Income Tax and NICs in circumstances where the agency rules apply to them, it will usually seek to recover unpaid amounts due from them. Whether the agency rules apply in a particular case is dependent on the facts of that case.
Asked by: Bambos Charalambous (Labour - Enfield, Southgate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of business rates on small businesses.
Answered by Jesse Norman
Business rates are an important source of funding for key local services such as adult social care and children’s services.
Small businesses may be eligible for Small Business Rate Relief (SBRR). Properties with a rateable value of £12,000 or less will pay no business rates under SBRR. For properties with a rateable value above £12,000 and less than £15,000, the SBRR will taper from 100% relief to 0%. Under SBRR, over 700,000 businesses pay no business rates.
Small businesses in the retail, hospitality and leisure sector may also be eligible for the three month extension to the business rates holiday provided at Budget 2020.
The fundamental review of business rates is considering all parts of the business rates system, including support for small businesses.
Asked by: Bambos Charalambous (Labour - Enfield, Southgate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many businesses HMRC has taken action against for not passing on Coronavirus Job Retention Scheme support to employees.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme (CJRS) is a grant paid to employers so they can pay employees while they are furloughed.
HMRC have over 6,000 employers under investigation, for a range of reasons, including not paying employees, making inflated claims, or making claims even though employees are still working. Within a single case there is often a number of reasons why HMRC are taking action.
However, apart from the enforcement of National Minimum Wage, HMRC do not have a role in regulating the relationship between employers and employees. If the CJRS grant has not been passed on to employees, HMRC have no legal authority to enforce payment but take action to recover the grant for which the employer is not eligible.
Employees can contact ACAS if they have concerns that they have not been able to resolve with their employer. Since February, HMRC have been publishing details of employers who have claimed a CJRS grant and have been informing employees of that claim via their personal tax account.
Employees who have concerns that they have been furloughed but have not been paid (or have been asked to work) can contact HMRC. Details can be found on GOV.UK.
Asked by: Bambos Charalambous (Labour - Enfield, Southgate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of the removal of business rates relief on independent retailers.
Answered by Jesse Norman
The unprecedented full business rates holiday for eligible retail, hospitality and leisure properties for the financial year is worth about £10 billion to business in 2020-21. The Government will continue to look at how to adjust its support in a way that ensures people can get back to work, protecting both the UK economy and the livelihoods of people across the country. The Government is considering options for reliefs for 2021-22 and will outline the next round of COVID-19 support measures at Budget.
Asked by: Bambos Charalambous (Labour - Enfield, Southgate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the stamp duty deadline in response to delays in completions resulting from the covid-19 outbreak.
Answered by Jesse Norman
The temporary SDLT relief was designed to stimulate immediate momentum in a property market where property transactions fell by as much as 50 per cent during the COVID-19 lockdown in March. This will also support the jobs of people whose employment relies on custom from the property industry, such as retailers and tradespeople.
The Government will continue to monitor the market. However, as the relief was designed to provide an immediate stimulus to the property market, the Government does not plan to extend this relief.
Asked by: Bambos Charalambous (Labour - Enfield, Southgate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what additional financial support is being made available for workers living with disabilities who have been furloughed under the Coronavirus Job Retention Scheme.
Answered by Jesse Norman
Individuals living with disabilities will benefit from the substantial financial support provided during the COVID-19 pandemic. This includes the Coronavirus Job Retention Scheme (CJRS), which has been extended until the end of April 2021. It is up to the employer to make the best decision for their organisation and their employees about whether to furlough staff. Standard discrimination law applies: an employer cannot decide who should be furloughed based on any protected characteristic. However, if people with a protected characteristic disproportionately request furlough, it is acceptable that furloughs would be disproportionately weighted towards that group. It is acceptable – indeed encouraged – to consult on the process with employees.
The Government recognises the challenges presented by COVID-19 for all those who are living with a disability and are Clinically Extremely Vulnerable (CEV). CEV individuals can access the Coronavirus Job Retention Scheme (CJRS) and the Self-Employment Income Support Scheme (SEISS), both of which can both be claimed during lockdown.
The Government’s support package during the pandemic sits alongside a substantial set of welfare support for individuals with disabilities. The Government will spend over £55 billion in 2020/21 on benefits to support disabled people and people with health conditions. The Personal Independence Payment remains the primary means of support to help with some of the extra cost of long-term ill-health or disability. Universal Credit and new style Employment and Support Allowance are available for those who have a disability or health condition that may affect how much they can work.
The Government has implemented a range of measures to make access to disability benefits easier and to protect existing claimants during the current situation. This includes temporarily suspending face to face assessments.
Asked by: Bambos Charalambous (Labour - Enfield, Southgate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what safeguards are in place to ensure that payments made to employers under the Coronavirus Job Retention Scheme for (a) salary and (b) pension contributions are administered to employees.
Answered by Jesse Norman
The employer must pay the employee all of the grant they receive for an employee’s gross pay in the form of money from the claim made under the Coronavirus Job Retention Scheme (CJRS). The employer cannot enter into any transaction with the employee which reduces the amount an employee receives. This includes any administration charge, fees or other costs in connection with the employment.
Where the employee has authorised the employer to make deductions from the salary, these deductions can continue while furloughed. The employee will still pay Income Tax, National Insurance contributions, Student Loan repayments and any other deductions (such as pension contributions) from their wages.
If an employee is concerned that an employer is abusing the scheme, they should report them to HMRC via their online fraud reporting tool on the GOV.UK site.
HMRC will check claims made through the scheme. Payments may be withheld or need to be repaid in full to HMRC if the claim is based on dishonest or inaccurate information or found to be fraudulent. HMRC will not hesitate to act on reports of abuse.
Asked by: Bambos Charalambous (Labour - Enfield, Southgate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what enforcement powers HMRC have used to ensure that employees receive payment from their employers under the Coronavirus Job Retention Scheme.
Answered by Jesse Norman
The employer must pay the employee all of the grant they receive for an employee’s gross pay in the form of money from the claim made under the Coronavirus Job Retention Scheme (CJRS). The employer cannot enter into any transaction with the employee which reduces the amount an employee receives. This includes any administration charge, fees or other costs in connection with the employment.
Where the employee has authorised the employer to make deductions from the salary, these deductions can continue while furloughed. The employee will still pay Income Tax, National Insurance contributions, Student Loan repayments and any other deductions (such as pension contributions) from their wages.
If an employee is concerned that an employer is abusing the scheme, they should report them to HMRC via their online fraud reporting tool on the GOV.UK site.
HMRC will check claims made through the scheme. Payments may be withheld or need to be repaid in full to HMRC if the claim is based on dishonest or inaccurate information or found to be fraudulent. HMRC will not hesitate to act on reports of abuse.
Asked by: Bambos Charalambous (Labour - Enfield, Southgate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the furlough scheme on workers living with disabilities.
Answered by Jesse Norman
When designing the Coronavirus Job Retention Scheme and subsequent reforms the Government undertook an analysis of how the policies were likely to affect individuals sharing protected characteristics, including workers living with disabilities, in line with its Public Sector Equality Duties. This is in line with the internal procedural requirements and support in place for ensuring that equalities considerations inform decisions taken by ministers.
The Government’s support package during the current pandemic sits alongside a substantial provision of welfare support for disabled individuals. Personal Independence Payment (PIP) remains the primary means of support to help with some of the extra cost of long-term ill-health or disability. Those with a health condition which prevents them from working or preparing for work may be entitled to an extra amount of Universal Credit.
Asked by: Bambos Charalambous (Labour - Enfield, Southgate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when new rules will be introduced to allow traders to apply for a Duty Deferment Account without a Customs Comprehensive Guarantee.
Answered by Jesse Norman
To be approved for a Duty Deferment Account (DDA) under the current Union Customs Code (UCC) rules customers need to be authorised by HMRC to provide a Customs Comprehensive Guarantee (CCG). This approach will continue until the end of the Transition Period, after which the requirement for a CCG to underpin a DDA in Great Britain will be removed for most compliant and solvent businesses.
The legislation to enable this change was laid in Parliament on 10 September. HMRC are developing a new application process for businesses wishing to use duty deferment in Great Britain at the end of the Transition Period. This is expected to be available by early November 2020.
The existing UCC rules for guarantees will continue to apply to businesses using duty deferment in Northern Ireland.