Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the existing HMRC enforcement regime with regards to tax evasion using cryptocurrencies; and if he will make a statement.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
Cryptoassets present unique challenges to HMRC as they can be easily acquired and transferred, including across borders, but do not usually record the identity of their owners.
HMRC has used powers provided by Parliament to gather information from cryptoasset exchanges. HMRC has written to customers where data shows they own, or have owned, cryptoassets. They have advised them of the tax consequences of common transactions.
HMRC also applies traditional enforcement approaches, such as enquiring into tax returns.
The UK continues to work with international partners, including multinational organisations such as the Organisation for Economic Co-operation and Development, to cooperate, share information, and develop responses.
The majority of individuals and businesses wish to pay the tax that is due, and the Government wants to help them get their tax affairs right. HMRC has published guidance on the taxation of cryptoassets, which is among the most detailed guidance released by any tax administration, on what is a complex topic.
HMRC has developed its capability to deal with risks arising from cryptoassets through the development of in-house training and the use of blockchain forensic tools.
HMRC will continue to actively monitor the compliance risks as this technology develops and the uses and users of cryptoassets change.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with UK Finance on the future of the cheque; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Cheques remain an important part of the UK’s payments landscape and, whilst there has been a decline in cheque volumes, they continue to be used by many individuals, businesses, and charities. In order to secure the future of cheque usage in the UK, HM Treasury introduced legislative measures in 2015 to allow UK banks and building societies to introduce ‘cheque imaging’. Cheque image clearing allows a digital image of a cheque to be sent for clearing, rather than the paper cheque itself.
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to help ensure that (a) vulnerable people, (b) the elderly and (c) people living in rural areas continue to have access to cash.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash is important to the daily lives of millions of individuals and businesses across the UK, including those who may be in vulnerable groups, elderly or living in rural areas.
Therefore, the Government has committed to protecting access to cash for those who need it and ensuring that the UK's cash infrastructure is sustainable for the long term.
The Government made legislative changes via the Financial Services Act 2021 to support the widespread offering of cashback without a purchase, which will allow shops and other businesses to offer a new form of cash withdrawal service to local communities.
On 1 July, the Government published a consultation on broader legislative proposals to protect access to cash. These proposals seek to ensure that people only need to travel reasonable distances to pay in or take out cash, and that the right regulatory oversight for cash access is in place for the future. The consultation is available at: https://www.gov.uk/government/consultations/access-to-cash-consultation
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the removal of the right to use red diesel from April 2022 for flood risk management purposes on the cost of pumping operations by IDBs and others; what consultation he has had with those likely to be affected; and what steps the Government plans to take to ensure that future flood prevention activities are not compromised.
Answered by Kemi Badenoch - President of the Board of Trade
The changes to the tax treatment of red diesel from April 2022 are designed to incentivise greater energy efficiency and the switch to more environmentally friendly alternatives in both the public and private sectors. The Government recognises that these changes may affect some public sector bodies, including Internal Drainage Boards, and Treasury officials met representatives from the drainage, water level and flood risk management sector to discuss these tax changes. The Treasury will discuss spending pressures that may arise in the public sector as part of the next Spending Review.
The Government takes flood risk very seriously. That is why it has doubled the amount it invests in flood and coastal defences to £5.2 billion by 2027.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the extension of covid-19 restrictions beyond 21 June 2021, what steps the Government is taking to support the hospitality sector; if he will take steps to reduce the tax burden on businesses affected by that extension; and what assessment he has made of the potential effect of raising VAT from 5 per cent in September 2021 on the events and hospitality sectors.
Answered by Jesse Norman
At Budget, the Chancellor was aware of the potential for short delays in the roadmap and announced a generous extension to existing economic support. In order to provide continuity for businesses, key measures including the Coronavirus Job Retention Scheme, Self-Employment Income Support Scheme, VAT cut extension, Business Rates Holiday, and Recovery Loan scheme do not end until September or after.
The extension to the temporary reduced rate of VAT (5 per cent) for the tourism and hospitality sector means that the relief will now end on 30 September 2021. On 1 October 2021, a new reduced rate of 12.5 per cent will be introduced for these goods and services to help businesses manage the transition back to the standard rate. The new rate will end on 31 March 2022.
This relief has cost over £7 billion and has helped support the cash flow and viability of 150,000 businesses and protect over 2.4 million jobs. While the Government keeps all taxes under review, there are no plans to extend the reduced rate of VAT further.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to reduce paperwork and other bureaucracy required on issues relating to rules of origin affecting companies exporting to the EU from 2022; and if he will make a statement.
Answered by Jesse Norman
The Government has been clear that leaving the Single Market and Customs Union will result in new customs processes for businesses trading with the EU. The UK has moved to a Free Trade Agreement (FTA) relationship, and Rules of Origin are a standard part of all FTAs.
The Government has secured a number of administrative facilitations, such as self-certification of origin, and, until 31 December 2021, an easement on the need for UK businesses to hold supplier declarations at the time they issue statements on origin, which will considerably reduce the administrative burdens of complying with rules of origin in trade with the EU. The easement on supplier declarations has been introduced to allow businesses time to establish the necessary arrangements to meet the requirements of the agreement.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent representations he has received in support of a reduced UK VAT rate of 5 per cent for tourism attractions and accommodation providers; and if he will make an assessment of the potential benefit to the tourism sector of that proposition in advance of his next Budget.
Answered by Jesse Norman
Raising £130 billion in 2019/2020, VAT is an important source of revenue for the Exchequer and plays an important part in funding the Government’s spending priorities including hospitals, schools and defence.
Reducing VAT on tourism and hospitality related activities would come at a considerable cost to the Exchequer. However, the Government keeps all taxes under review.
In light of the COVID-19 outbreak, the Chancellor has pledged a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates worth more than £300 billion.