Asked by: Chris Ruane (Labour - Vale of Clwyd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of a online sales tax.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
I recently discussed the merits of an online sales tax in evidence to a joint session of the House of Commons Housing, Communities and Local Government Select Committee and Treasury Select Committee, to inform an inquiry into High streets and town centres in 2030.
This evidence is available at the following link: http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/housing-communities-and-local-government-committee/high-streets-and-town-centres-in-2030/oral/94442.pdf
The government keeps all tax policy under review as part of the normal policy making process and will share any relevant announcements at the appropriate fiscal event.
Asked by: Chris Ruane (Labour - Vale of Clwyd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what procedures his Department has put in place to monitor the successful migration from manual taxation to making tax digital.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Mandatory online filing for VAT returns was introduced in 2012 and some 98% of VAT returns are already received online. HM Revenue and Customs (HMRC) is committed to ensuring businesses can successfully transition to Making Tax Digital (MTD) – which also requires use of digital tools for record keeping. HMRC has been running an extensive pilot to test the service, including the support that has been developed to help businesses transition, and ensure it is designed in the light of business and agent experience. HMRC is closely monitoring progress in the pilot, evaluating the number of sign-ups, submissions, the customer service offering and other technical elements ahead of the service being mandated for periods starting on or after 1 April. They are also tracking levels of awareness and the experience of businesses in the pilot.
This monitoring will continue after mandation when HMRC will be able to continue to assess how the service is operating at scale, and the impact on additional tax revenue.
MTD will not be extended to other taxes or to those below the VAT threshold until the system is shown to be working.
Asked by: Chris Ruane (Labour - Vale of Clwyd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish the dates of the meetings he has had with representatives of the Federation of Small Businesses on making tax digital.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
I refer you to my answer to Question 220806 which references the extensive stakeholder engagement exercise undertaken as part of the development of Making Tax Digital (MTD), and which involved the Federation of Small Businesses (FSB). The FSB have also shared their views about these important reforms with me directly.
The FSB is also a member of a number of fora where HMRC engages with stakeholders on issues relevant to the development of MTD, including the Joint VAT Consultative Committee, and the SME Digital Services Group.
Entries for ministerial meetings with external organisations are published quarterly on GOV.UK.
Asked by: Chris Ruane (Labour - Vale of Clwyd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will list the consultations he has had on making tax digital with (a) professional bodies representing SME’s and (b) the ICAEW.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
During the consultations on MTD in 2016, we received detailed responses from ICAEW, Federation of Small Businesses, Chartered Institute of Taxation, Low Incomes Tax Reform Group, National Farmers' Union and others. Their contribution was influential in shaping the Making Tax Digital (MTD) service.
The Government and HMRC have since maintained a regular dialogue with businesses, tax agents, professional bodies and software developers throughout the design and delivery of MTD.
The Making Tax Digital Impact Assessment published on 1st December 2017 remains a credible estimate of costs and savings for the VAT businesses that will be mandated from April 2019 and takes account of both software and hardware costs:
HMRC have been working closely with the software industry to create a competitive market. Currently, there are over 160 MTD-compatible software products available, at a range of price points including some free products and others which allow continued use of a spreadsheet.
As set out in the Impact Assessment, very few businesses will incur costs relating to hardware due to MTD. Most businesses will be able to claim any costs for hardware and software against their tax.
Asked by: Chris Ruane (Labour - Vale of Clwyd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the cost to SMEs of purchasing making tax digital compatible computer (a) software and (b) hardware.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
During the consultations on MTD in 2016, we received detailed responses from ICAEW, Federation of Small Businesses, Chartered Institute of Taxation, Low Incomes Tax Reform Group, National Farmers' Union and others. Their contribution was influential in shaping the Making Tax Digital (MTD) service.
The Government and HMRC have since maintained a regular dialogue with businesses, tax agents, professional bodies and software developers throughout the design and delivery of MTD.
The Making Tax Digital Impact Assessment published on 1st December 2017 remains a credible estimate of costs and savings for the VAT businesses that will be mandated from April 2019 and takes account of both software and hardware costs:
HMRC have been working closely with the software industry to create a competitive market. Currently, there are over 160 MTD-compatible software products available, at a range of price points including some free products and others which allow continued use of a spreadsheet.
As set out in the Impact Assessment, very few businesses will incur costs relating to hardware due to MTD. Most businesses will be able to claim any costs for hardware and software against their tax.
Asked by: Chris Ruane (Labour - Vale of Clwyd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the preparedness of SMEs in dealing with the migration from the manual taxation to Making Tax Digital regime.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Businesses who are registered for VAT and whose taxable turnover exceeds the VAT registration threshold of £85,000 will be required to keep their records digitally and file their VAT returns using Making Tax Digital (MTD) compatible software for periods starting on or after 1 April. For the majority of businesses, who file quarterly, their first MTD returns won’t be due until August or later. Small businesses with turnover below the VAT threshold are not required to join, but can do so voluntarily.
HMRC are using a range of methods to communicate with businesses and agents, both paid for and free, in order to ensure businesses are aware of the changes and know what they need to do to prepare.
Thousands of businesses have already joined the MTD VAT pilot service. HMRC are on track to have written to every business who is required to join MTD by the end of February, encouraging them to join the pilot and pointing them to the range of help and support that is available.
HMRC’s Impact Assessment for MTD, published on 1 December 2017, was developed through a widespread and comprehensive programme of work that considered the costs and requirements of businesses across the VAT population. The methodology and modelling has been rigorously reviewed, including by trusted external stakeholders such as the Administrative Burdens Advisory Board (ABAB). The Impact Assessment considered the requirements for businesses of different sizes and practices, including small businesses.
Businesses and accountants are making preparations for the introduction of MTD, and thousands have already joined the pilot on a voluntary basis to test the service before they are mandated to use it. Most businesses will not need to submit their first VAT return through the new service until August at the earliest. For the first year, penalties will not be issued for late filing, only for late payment.
Asked by: Chris Ruane (Labour - Vale of Clwyd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the cost to SMEs of Making Tax Digital.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Businesses who are registered for VAT and whose taxable turnover exceeds the VAT registration threshold of £85,000 will be required to keep their records digitally and file their VAT returns using Making Tax Digital (MTD) compatible software for periods starting on or after 1 April. For the majority of businesses, who file quarterly, their first MTD returns won’t be due until August or later. Small businesses with turnover below the VAT threshold are not required to join, but can do so voluntarily.
HMRC are using a range of methods to communicate with businesses and agents, both paid for and free, in order to ensure businesses are aware of the changes and know what they need to do to prepare.
Thousands of businesses have already joined the MTD VAT pilot service. HMRC are on track to have written to every business who is required to join MTD by the end of February, encouraging them to join the pilot and pointing them to the range of help and support that is available.
HMRC’s Impact Assessment for MTD, published on 1 December 2017, was developed through a widespread and comprehensive programme of work that considered the costs and requirements of businesses across the VAT population. The methodology and modelling has been rigorously reviewed, including by trusted external stakeholders such as the Administrative Burdens Advisory Board (ABAB). The Impact Assessment considered the requirements for businesses of different sizes and practices, including small businesses.
Businesses and accountants are making preparations for the introduction of MTD, and thousands have already joined the pilot on a voluntary basis to test the service before they are mandated to use it. Most businesses will not need to submit their first VAT return through the new service until August at the earliest. For the first year, penalties will not be issued for late filing, only for late payment.
Asked by: Chris Ruane (Labour - Vale of Clwyd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much his Department has spent on publicity and advertising relating to the migration of businesses to the Making Tax Digital regime.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Businesses who are registered for VAT and whose taxable turnover exceeds the VAT registration threshold of £85,000 will be required to keep their records digitally and file their VAT returns using Making Tax Digital (MTD) compatible software for periods starting on or after 1 April. For the majority of businesses, who file quarterly, their first MTD returns won’t be due until August or later. Small businesses with turnover below the VAT threshold are not required to join, but can do so voluntarily.
HMRC are using a range of methods to communicate with businesses and agents, both paid for and free, in order to ensure businesses are aware of the changes and know what they need to do to prepare.
Thousands of businesses have already joined the MTD VAT pilot service. HMRC are on track to have written to every business who is required to join MTD by the end of February, encouraging them to join the pilot and pointing them to the range of help and support that is available.
HMRC’s Impact Assessment for MTD, published on 1 December 2017, was developed through a widespread and comprehensive programme of work that considered the costs and requirements of businesses across the VAT population. The methodology and modelling has been rigorously reviewed, including by trusted external stakeholders such as the Administrative Burdens Advisory Board (ABAB). The Impact Assessment considered the requirements for businesses of different sizes and practices, including small businesses.
Businesses and accountants are making preparations for the introduction of MTD, and thousands have already joined the pilot on a voluntary basis to test the service before they are mandated to use it. Most businesses will not need to submit their first VAT return through the new service until August at the earliest. For the first year, penalties will not be issued for late filing, only for late payment.
Asked by: Chris Ruane (Labour - Vale of Clwyd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will list the planned large-scale national infrastructure projects which have been cancelled by (a) private sector entities, (b) public sector entities and (c) public private partnerships in each of the last nine years; and what the (i) location and (ii) estimated value was of each such project.
Answered by Robert Jenrick
The National Infrastructure and Construction Pipeline, published annually by the Infrastructure and Projects Authority, provides updates on the progress of the priority projects listed in the National Infrastructure Delivery Plan 2016-2021.
Please see the latest 2018 Analysis of National Infrastructure and Construction Pipeline here : https://www.gov.uk/government/publications/national-infrastructure-and-construction-pipeline-2018
Link to the National Infrastructure Delivery Plan 2016-2021: https://www.gov.uk/government/publications/national-infrastructure-delivery-plan-2016-to-2021
The IPA has published data on PFI / PF2 projects which are in procurement, construction or operation annually. The latest dataset is available here - https://www.gov.uk/government/publications/private-finance-initiative-and-private-finance-2-projects-2017-summary-data