Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of trends in the level of costs incurred by businesses for accountancy software packages to ensure their compliance with Making Tax Digital requirements in each of the last three years.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC has worked closely with software providers so that businesses will be able to choose a product that suits both their budget and their needs. This includes some products which have been deployed specifically to support different types of sectors.
There are free software products suitable for smaller, simpler businesses and subscription based Making Tax Digital (MTD) compatible software available. Costs will differ from business to business, and are influenced by factors including the size and complexity of the business, degree of digital capability, and the cost and functionality of software solution employed.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact on small businesses of introducing a price cap on software for Making Tax Digital for VAT.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC has worked closely with software providers so that businesses should be able to choose a product that suits both their budget and their needs. This includes some products which have been deployed specifically to support different types of sectors.
There are free software products suitable for smaller, simpler businesses and subscription-based Making Tax Digital (MTD) compatible software available, but invariably, costs will differ from business to business, and are influenced by factors including size and complexity of business, degree of digital capability and cost and functionality of software solution employed.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, following the publication by his Department in November 2021 of research on the ongoing impact of Making Tax Digital for VAT, if his Department will make an assessment of the potential merits of providing (a) financial support and (b) support with adapting to new technologies to affected businesses for which the costs of that programme outweigh the benefits.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Making Tax Digital (MTD) does not require expensive software or services to run. Lots of businesses already using modern, cloud-based accounting software saw their software upgraded for MTD free of charge. There are free software products suitable for smaller, simpler businesses, while subscription based software starts from around £10 a month.
HMRC wants to ensure that MTD is straightforward, and businesses feel supported throughout. Those businesses needing help can find extensive support to help them digitally engage on the GOV.UK Website here: www.gov.uk/guidance/help-and-support-for-making-tax-digital.
Independent research has confirmed that many businesses have already seen how digitisation benefits their business. The Enterprise research centre concluded that many businesses who use software to manage their accounts have over 10 per cent higher productivity.
From the start, the government has been clear that businesses which genuinely cannot operate MTD will not be required to do so. Details on how to claim exemption are available on the GOV.UK website.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of how many people in each nation and region of the UK will benefit from the (a) new annual allowance for pension contributions and (b) the removal of the limit on pension saving.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Information on the increase to the annual allowance and abolition of the lifetime allowance can be found in the Pension Tax Limits Policy paper Pension Tax Limits - GOV.UK (www.gov.uk)
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when his Department plans to publish the criteria which will be used to review the energy support provided to businesses after April 2023.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Through the Energy Bill Relief Scheme (EBRS), the government will provide a discount on wholesale gas and electricity prices for all non-domestic consumers (including UK businesses, the voluntary and public sectors).
This is a temporary measure that will protect them from soaring energy costs and provide them with the certainty they need to plan through the acute crisis this winter. It will apply to energy usage from 1 October 2022 to 31 March 2023.
The current support to non-domestic consumers is time-limited and exceptional so they can manage through an acute winter and provides time for them to adjust their operating models. It is the Government’s intention that after this winter support targets only the most vulnerable businesses. A Treasury-led review will consider how best to deliver these objectives.
As part of the review, we will ensure that all relevant considerations are taken into account.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the adequacy of the fuel mileage allowance rates.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
The Government sets the Approved Mileage Allowance Payment (AMAP) rates to minimise administrative burdens.
The current AMAP rates allow employees to claim up to 45 pence per mile for the first 10,000 miles and 25 pence for each subsequent mile, tax free if they use their private car or van for business purposes. An additional 5 pence per mile may also be claimed for every passenger transported.
AMAPs are intended to create administrative simplicity and certainty by using an average rate, which reflects vehicle running costs including fuel, depreciation, servicing, insurance, and Vehicle Excise Duty. As it is an average, the rate is necessarily more appropriate for some drivers than others.
Employers are not required to use the AMAP rates. Instead, they can agree to reimburse a different amount that better reflects their employees’ circumstances. If an employee is paid less than the AMAP rate, they can claim Mileage Allowance Relief (MAR) on the shortfall. However, where payments exceed the relevant AMAP rate, there will be an Income Tax and National Insurance charge on the difference.
The Government keeps the AMAP rates, like all taxes and allowances, under review and any changes are considered by the Chancellor.