Asked by: Carol Monaghan (Scottish National Party - Glasgow North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to reduce VAT on broadband social tariffs.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
VAT is the UK’s third largest tax forecast to raise £161 billion in 2023/24, helping to fund key spending priorities such as public services, including the NHS, education and defence. Exceptions to the standard rate have always been limited by both legal and fiscal considerations.
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited by both legal and fiscal considerations. This request should be viewed in the context of over £50 billion of requests for relief from VAT received since the EU referendum.
Although there are no current plans to reduce VAT on broadband social tariffs, the Government keeps all taxes under review.
Asked by: Carol Monaghan (Scottish National Party - Glasgow North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effectiveness of the expensive car supplement.
Answered by James Cartlidge - Shadow Secretary of State for Defence
Cars with a list price when new exceeding £40,000 pay an additional supplement for five years as well as paying the standard rate of Vehicle Excise Duty (VED), which means those who can afford the most expensive cars pay more than the standard rate paid by other drivers.
The £40,000 threshold was set as a suitable way of distinguishing the more luxury end of the new car market. As around 80% of all new cars currently have a list price below £40,000, the Government considers this threshold to be suitable.
As with all taxes, the expensive car supplement is kept under review and any changes are considered and announced by the chancellor.
Asked by: Carol Monaghan (Scottish National Party - Glasgow North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will ensure that his Department provides compensation for unused Kiddicare vouchers to parents whose children no longer require childcare.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Childcare vouchers are a contractual arrangement between the parent, employer, and voucher provider. The Government is not party to these arrangements and the availability of a refund will depend on the precise terms and conditions of the employer’s scheme.
While some voucher schemes allow for refunds in certain circumstances, this is not a legal requirement.
Where an employer or provider does offer a refund, any refund is treated as income from employment and subject to deduction of tax and National Insurance contributions in the normal way.
Asked by: Carol Monaghan (Scottish National Party - Glasgow North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to enable parents to claim a refund for unused Kiddicare vouchers.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Childcare vouchers are a contractual arrangement between the parent, employer, and voucher provider. The availability of a refund will depend on the precise terms and conditions of the employer’s scheme, and is not something the Government is party to.
Parents may request a refund by contacting their employer or childcare voucher provider directly. Where an employer or provider does allow the vouchers to be returned and a refund is offered, the refund is treated as income from employment and subject to deduction of tax and National Insurance contributions in the normal way.
While some voucher schemes allow for refunds in certain circumstances, this is not a legal requirement to do so. If a refund provision is not in the contract, the employer or voucher provider does not legally have to issue a refund.
Asked by: Carol Monaghan (Scottish National Party - Glasgow North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps parents can take to claim a refund for unused Kiddicare vouchers.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Childcare vouchers are a contractual arrangement between the parent, employer, and voucher provider. The availability of a refund will depend on the precise terms and conditions of the employer’s scheme, and is not something the Government is party to.
Parents may request a refund by contacting their employer or childcare voucher provider directly. Where an employer or provider does allow the vouchers to be returned and a refund is offered, the refund is treated as income from employment and subject to deduction of tax and National Insurance contributions in the normal way.
While some voucher schemes allow for refunds in certain circumstances, this is not a legal requirement to do so. If a refund provision is not in the contract, the employer or voucher provider does not legally have to issue a refund.
Asked by: Carol Monaghan (Scottish National Party - Glasgow North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the Irish Government’s recent announcement of a higher rate of video games tax relief at 32 per cent on the UK's video games sector; and whether he plans to accept the recommendation of The Independent Game Developers’ Association (TIGA) to increase the rate of video games tax relief in the UK.
Answered by James Cartlidge - Shadow Secretary of State for Defence
The Government recognises the valuable economic and cultural contribution of the video games industry. The Video Games Tax Relief (VGTR) has supported £5.1 billion of UK expenditure on 1,940 games since its introduction in 2014.
At Spending Review 2021 the government confirmed £8 million for the continuation of the UK Games Fund which provides bespoke support for the UK’s independent video game industry.
The Government regularly receives proposals for changes to tax reliefs. When considering changes, the Government must ensure they provide support to businesses in a fair way and that taxpayer money is effectively targeted. An uplift in the rate of VGTR is not currently under consideration. However, the Government keeps all tax reliefs under review.