Asked by: Gordon Henderson (Conservative - Sittingbourne and Sheppey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to provide support to (a) seaside and (b) high street arcades; and if he will extend the reduction in the rate of VAT to 5 per cent to include that sector.
Answered by Jesse Norman
The Government initially cut the rate of VAT applied to hospitality, accommodation and attractions, from 20 per cent to 5 per cent, for a period of six months to 12 January 2021. The Government has extended this relief, and it will now end on 31 March 2021. The reduced rate aims to support the cash flow and viability of over 150,000 businesses in the affected sectors and will help protect 2.4 million jobs.
Any business providing relevant hospitality, accommodation or attractions is able to benefit from the relief, wherever the business is located in the UK. Further information on this is available on GOV.UK. This policy will cost over £3 billion, and while some businesses in some sectors are disappointed, a boundary for eligibility had to be drawn.
Asked by: Gordon Henderson (Conservative - Sittingbourne and Sheppey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to (a) review the proposed changes to IR35 and (b) support people who are self-employed.
Answered by Jesse Norman
The Chancellor has commissioned a review of the off-payroll working rules reform (IR35). As set out at Budget 2018, the reform is due to be extended to all sectors from April 2020. The review will focus on the implementation of the reform, and consider whether there are any further steps the Government can take to ensure the smooth and successful implementation of the upcoming reforms. The off-payroll working rules do not affect the self-employed; part of the review will consider whether this is clearly understood by businesses in their implementation of the reforms. In parallel to the review, HMRC will be stepping up their efforts to support individuals and businesses in preparing for these changes and raising awareness of the reform.
The Government is committed to supporting self-employed professionals and consultants. From April 2019, the UK will have increased its Personal Allowance by over 90% in less than a decade. The self-employed have also been given access to the full rate of the new State Pension, worth over £2,000 a year more to a self-employed individual than under the previous system.
Budget 2018 announced that the Government is extending the New Enterprise Allowance, to help people start a business; introducing a £10m pilot to support self-employed training; and equalising the treatment of all self-employed people with respect to the Universal Credit Minimum Income Floor.
Asked by: Gordon Henderson (Conservative - Sittingbourne and Sheppey)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether the Government plans to encourage high street banks to offer the Lifetime ISA.
Answered by Jane Ellison
Ultimately, the decision to offer the Lifetime ISA is for individual providers to make.
The Government anticipates that the market will continue to grow over the course of the year as providers put their systems in place and develop their products.
Asked by: Gordon Henderson (Conservative - Sittingbourne and Sheppey)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he is taking to reduce the amount of correspondence not yet dealt with at the HM Revenue and Customs Stamp Duty office.
Answered by David Gauke
This Government invested in HM Revenue and Customs’ (HMRC) Stamp Taxes business unit at Budget 2016 to increase capacity in relation to the new higher rates of Stamp Duty Land Tax on additional properties.
In order to reduce volumes of correspondence HMRC is reviewing guidance to cover those areas where substantial correspondence has been generated.
Additional resources have been put into call handling at HMRC’s Stamp Taxes helpline, providing an improved customer service and aiming to reduce follow-up correspondence.
Asked by: Gordon Henderson (Conservative - Sittingbourne and Sheppey)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he is taking to improve customer service at HM Revenue and Customs for small businesses.
Answered by David Gauke
Most small businesses engage with HM Revenue and Customs (HMRC) digitally. 1.4 million businesses are already using the new digital tax account, and most register, file and pay online.
HMRC is expanding its range of digital help and support for small businesses, including YouTube videos, webinars and webchat to help them understand their obligations and how to meet them.
HMRC also offers tailored support to new businesses and those which are first time employers or new to VAT. These services are increasingly popular and small business feedback on them is very positive. HMRC provides an assisted digital service for those who are unable to engage digitally.
Asked by: Gordon Henderson (Conservative - Sittingbourne and Sheppey)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when he plans to announce his response to the consultation on removing the personal allowance for people living abroad.
Answered by David Gauke
The consultation closed on 9th October. I expect the Government to set out the conclusions of the consultation and any next steps at the Autumn Statement on 3rd December.
Asked by: Gordon Henderson (Conservative - Sittingbourne and Sheppey)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of freezing fuel duty on the price of petrol.
Answered by Baroness Morgan of Cotes
Since 2011, the Government has abolished the previous Government's fuel duty escalator, cut duty by 1 penny per litre, and scrapped four planned duty increases. As a result, by the end of the Parliament, petrol will cost nearly 20 pence per litre less than under the previous Government's plans.