Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the turnover threshold for small business VAT in the context of rising levels of inflation.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The Government recognises that accounting for VAT can be a burden on small businesses. This is why, at £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether.
Views on the VAT registration threshold are divided and the case for change has been regularly reviewed over the years. While some businesses have argued that a higher threshold would reduce administrative and financial burdens, others contend that a lower threshold would provide a fairer competitive environment.
In 2018, the Government consulted on how the design of the VAT registration threshold could better incentivise growth. However, there was no clear option for reform.
It was announced at Autumn Budget 2022 that the VAT threshold will be maintained at its current level of £85,000 until 31 March 2026.
Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to ensure financial service sector organisations knowingly involved in the facilitation or purchase of agricultural products illegally looted from Russian occupied areas of Ukraine cannot (a) obtain financing, (b) obtain services, (c) trade and operate within the UK and (b) what assessment he has made of the adequacy of the current enforcement system in preventing the looting of agricultural materials from Ukraine.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
We stand united with our international partners in the face of Russian aggression. In lockstep with our allies, we have introduced the largest and most severe economic sanctions that Russia has ever faced to cripple Putin’s war machine. This includes restricting access to finance with asset freezes on Russia’s major banks, including banks active in occupied Ukrainian territory. We have also prohibited the import of all goods that come from non-government controlled Ukrainian territory in Crimea, Luhansk and Donetsk.
It is a criminal offence to contravene sanctions, as well as to enable or facilitate a contravention of, or to circumvent them. The Office for Financial Sanctions Implementation (OFSI) is responsible for monitoring and compliance with financial sanctions and for assessing suspected breaches. It also has the power to impose monetary penalties for breaches of financial sanctions and to refer cases to law enforcement agencies for investigation and potential prosecution. HMRC is responsible for enforcement of UK Trade Sanctions and Strategic Export control working closely with Border Force. HMRC has implemented a number of measures which aim to prevent the exportation and importation of restricted goods from or to the UK and has a range of enforcement options.
Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the number of promoters and operators of schemes now subject to the loan charge have been prosecuted for promoting and operating those schemes.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
I refer my hon. Friend to the answer that was given on 3 November 2021 to the Question UIN 62867