Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people who were liable for the Loan Charge have taken their own lives.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Any loss of life is a tragedy, and the Government takes issues relating to loss of life extremely seriously. On 6 January 2023, HM Revenue and Customs wrote to the Treasury Select Committee to inform them that ten referrals have been made to the Independent Office for Police Conduct (IOPC) where a taxpayer has sadly taken their life and used a disguised remuneration scheme. HMRC made the first of these referrals to the IOPC in March 2019. Following referral HMRC has conducted internal investigations, eight investigations have concluded and there was no evidence of misconduct by any HMRC officer. Two investigations are currently ongoing. HMRC is committed to learning and making improvements so as to avoid causing undue stress and, wherever possible, identify taxpayers who need extra help and give them the support they need.
Taxpayers are also supported by HMRC’s Extra Support Teams. These are teams of trained advisors who, where appropriate, signpost taxpayers to Voluntary and Community organisations. To further improve the emotional support offered to taxpayers, HMRC and Samaritans are working together to deliver an 18-month project. As part of the pilot, Samaritans will further strengthen the capability and confidence of HMRC’s Extra Support Teams by providing additional guidance and coaching techniques to identify taxpayers who might be in vulnerable circumstances. Where needed, HMRC will signpost taxpayers to specialist emotional support through a dedicated Samaritans helpline.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many promoters and operators of schemes now subject to the Loan Charge have been prosecuted for promoting and operating those schemes.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Honorable Member is referred to the answer provided on 14 November 2022 to the Question UNI 86483
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the adequacy of HMRC's processes for collecting PAYE tax from agencies.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Agencies must deduct Income Tax and National Insurance Contributions (NICs) at source from payments of earnings to agency workers. HMRC’s processes for collecting any Income Tax and NICs due from agencies under Pay As You Earn (PAYE) are the same as those for other employers.
Where HMRC finds that a UK agency has failed to account for Income Tax and NICs in circumstances where the agency rules apply to them, it will usually seek to recover unpaid amounts due from them. Whether the agency rules apply in a particular case is dependent on the facts of that case.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an estimate of the number of individuals who may be declared bankrupt in connection with the Loan Charge, including the use of section 684 notices.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
No assessment has been made of the number of people who may be declared bankrupt as a result of debts arising from the use of a disguised remuneration avoidance scheme.
Where debts arise, HMRC are not always the only creditor. Some individuals are declared bankrupt as a result of a non-HMRC debt and some individuals may choose to enter insolvency themselves based on their overall financial position.
HMRC only ever considers insolvency as a last resort, and they encourage taxpayers to get in contact to agree the best way to settle their tax debts. To date, HMRC has not initiated insolvency proceedings against any taxpayer for a Loan Charge debt.
Anyone who is worried about being able to pay what they owe should contact HMRC, who may be able to agree an instalment arrangement based on the individuals’ financial circumstances. There is no maximum length for these arrangements.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of increasing the threshold at which single-income families begin to pay the High Income Child Benefit Charge.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The High Income Child Benefit Charge (HICBC) is charged on an individual rather than a household basis, in line with other tax policy. It applies to Child Benefit recipients who have, or whose partner has, an adjusted net income (ANI) of £50,000 regardless of family makeup.
It would not be practical for HMRC to increase the threshold for single-income families only, as it would require HMRC to operate two parallel income thresholds. This would further complicate the tax system for families, would not ensure consistency between claimants, and would entail a significant operational burden for HMRC. Tax simplification is a priority for this Government.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of inflation on devolved assemblies' budgets for health services.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The devolved administrations are well-funded to deliver all their devolved responsibilities, including health services.
The 2021 Spending Review set the largest annual block grants, in real terms, of any spending review settlement since the devolution Acts. Those settlements are still growing in real terms this year, and over the three-year spending review period, despite inflation being higher than expected.
This provides the devolved administrations with over 20% more funding per person than equivalent UK Government spending in other parts of the UK. This is around 25% more for the Scottish Government and around 20% more for the Welsh Government and NI Executive. It is for the devolved administrations to decide how to allocate their funding in devolved areas.
Like many countries, the UK faces the twin challenge of a recession and high inflation as global energy price rises have been exacerbated by Putin’s war in Ukraine. The Government has set out its plan to halve inflation over the course of this year by remaining steadfast in support for the independent Monetary Policy Committee at the Bank of England, making difficult but responsible decisions on tax and spending to not add fuel to the fire, and by tackling high energy prices by holding down energy bills for households and businesses this year and next and investing in long-term energy security.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent steps he has taken to help support small and medium-sized enterprises in (a) Northern Ireland and (b) the rest of the UK with increased costs.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The new Energy Bills Discount Scheme (EBDS), which is replacing the Energy Bill Relief Scheme (EBRS) from 1 April 2023, will provide eligible businesses and other non-domestic energy users, including small and medium sized businesses, across the UK with a discount on high energy bills until 31 March 2024.
The UK Government and the devolved administrations support services providing advice and help for SMEs. Businesses in Northern Ireland can find resources on https://www.nibusinessinfo.co.uk/. They can also call Invest Northern Ireland for free advisory services (0800 181 4422).
More broadly, the Government has brought forward a number of measures which support smaller businesses over the past year. This includes cutting the cost of employment for hundreds of thousands of small businesses by increasing the Employment Allowance and helping smaller businesses access finance by extending the Recovery Loan Scheme.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of trends in the levels of Government borrowing in the last five years.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Trends in the level of borrowing in the last five years reflect the UK dealing with the consequences of significant global shocks.
By 2018-19, the Government had succeeded in reducing the deficit from the 2009-10 peak by four-fifths. However, following the actions taken during the pandemic, borrowing reached a post-war high in 2020-21. While it decreased in 2021-22, this still remained more than double the level seen in 2019-20. Borrowing is expected to increase this year as the Government has taken action to support families and businesses with their energy bills.
You can find recent borrowing figures in HM Treasury’s Autumn Statement 2022 document, found here: AUTUMN STATEMENT 2022 (publishing.service.gov.uk)
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential benefits of crypto (a) currencies and (b) assets to society.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The government’s ambition is to make the UK a global hub for cryptoasset technology and investment. In April, previous Ministers set out a number of reforms which will see the regulation and aspects of tax treatment of cryptoassets evolve.
The Bank of England’s Financial Policy Committee has noted that the underlying technologies behind cryptoassets could bring a number of benefits to financial services, including reduced transaction costs and greater operational resilience.
For instance, certain stablecoins could drive transformational changes in financial markets and offer consumers new ways to transact and invest. Increased competition between existing UK payment systems could also potentially lead to lower costs and improved services in the long run. The Financial Services and Markets Bill will allow HMT to bring stablecoins within the regulatory perimeter where they are used as a form of payment. This legislation will ensure that the UK’s regulatory framework is equipped to harness benefits of stablecoins, supporting the adoption of cutting-edge technologies, while mitigating the potential risks.
Recent events in cryptoasset markets have highlighted the importance of establishing regulation which supports safe innovation and protects consumers and stability. The government will consult on its approach to regulating wider cryptoasset activities in the coming weeks.
The government and the Cryptoasset taskforce continue to closely monitor the wider cryptoasset market and will stand ready to take further regulatory action if required.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the potential impact of the Rosebank oil field development on tax receipts in the next ten years.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Office for Budget Responsibility’s (OBR) forecast at Autumn Statement 2022 estimates revenues from Energy Profits Levy are expected to be £41.6 billion over the next six years. Total UK oil and gas revenues over this period are forecast to be around £80 billion.
A full breakdown of revenues for all North Sea oil taxes (including Ring-Fence Corporation Tax and Petroleum Revenue Tax) can be found in the Economic and Fiscal Outlook published by the OBR in November 2022.
OBR forecasts for oil and gas revenues do not separate out specific projects or taxpayers.