Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on employment in the hospitality sector when VAT is returned to 20 per cent for this sector.
Answered by Lucy Frazer
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Budget 2021, the Government has extended the temporary reduced rate of VAT of 5% for the tourism and hospitality sector. This relief ended on 30 September. On 1 October 2021, a new reduced rate of 12.5% was introduced to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.
This relief will cost over £7 billion and, while all taxes are kept under review, there are no plans to extend the 12.5% reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the cash flow and viability of sectors that have been severely affected by COVID-19. It is appropriate that as restrictions are lifted and demand for goods and services in these sectors increases, the temporary tax reliefs are first reduced and then removed in order to rebuild and strengthen the public finances.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC is taking against umbrella companies who advised their clients to use disguised remuneration schemes.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government and HM Revenue and Customs (HMRC) are determined to continue to tackle promoters and operators of tax avoidance schemes. This includes challenging the entities, including umbrella companies, and individuals who promote disguised remuneration schemes.
Umbrella companies advising individuals to use disguised remuneration tax avoidance schemes are treated as promoters or enablers by HMRC. Where appropriate, they are subject to the range of measures laid out in HMRC’s strategy for tackling promoters of tax avoidance schemes, published on 19 March 2020. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust actions against promoters of tax avoidance. The Promoter Strategy is available on GOV.UK.
The Government announced new measures at Budget 2020, which will strengthen the existing regimes and which will help HMRC act more swiftly against promoters and enablers. The Government has also announced that it will consult in the spring on further measures to tackle promoters.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of how many medical professionals are (a) subject to or (b) have settled to avoid being subject to the Loan Charge.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC do not hold the requested estimates and do not routinely collect data on profession.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the number of armed forces veterans that (a) are subject to or (b) have settled to avoid being subject to the Loan Charge.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC do not hold the requested estimates and do not routinely collect data on profession.