Asked by: Jonathan Edwards (Independent - Carmarthen East and Dinefwr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with (a) regulators and (b) other relevant stakeholders on (i) the use of tracking apps by car insurance companies and (ii) ensuring that consumers are able to identify which products require the use of such apps when procuring car insurance products.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
Insurers should treat customers fairly and firms are required to do so under Financial Conduct Authority (FCA) rules. The FCA is an independent body responsible for regulating and supervising the financial services industry, including insurance.
The FCA requires that an insurer must give information to a consumer about the terms and conditions of insurance products in a comprehensible form to enable them to make an informed purchasing decision.
The Government regularly engages with both the FCA and insurance industry stakeholders.
Asked by: Jonathan Edwards (Independent - Carmarthen East and Dinefwr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he will publish proposals to replace the EU Green Taxonomy Framework.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The UK Green Taxonomy Consultation is under review and the Government will be setting out next steps in due course.
Asked by: Jonathan Edwards (Independent - Carmarthen East and Dinefwr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with the banking hub company on setting up a site in the Upper Tywi Valley in Carmarthenshire.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Government has welcomed industry efforts to develop coordinated initiatives to support access to cash. Following the Government’s commitment to legislate to protect access to cash, the Cash Action Group announced plans for industry to assess the access to cash needs of communities where there is a closure of a core cash service or upon the request of a local community. These assessments are undertaken independently by LINK (which operates the UK’s largest ATM network) and the provision of shared bank hubs is a commercial decision for industry. Where LINK recommends the introduction of a bank hub, industry has established the Bank Hub company to oversee the rollout of banks hubs across the UK. Further information about the assessment process can be found on LINK’s website.
Asked by: Jonathan Edwards (Independent - Carmarthen East and Dinefwr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of increasing the tax free mileage allowance in the context of rising fuel prices.
Answered by Lucy Frazer
The Government sets the Approved Mileage Allowance Payments (AMAPs) rates to minimise administrative burdens.
Organisations are not required to use the AMAPs rates. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.
Alternatively, they can choose to use a different mileage rate that better reflects their employees’ circumstances. However, tax is charged on any payment received by employees which exceed the AMAPs rate.
The Government keeps this policy under review.
Asked by: Jonathan Edwards (Independent - Carmarthen East and Dinefwr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of (a) providing a rebate to people who paid tax on grant funding from the Self-Employment Income Support Scheme for the 2020-21 tax return and (b) removing the requirement that people who have received grants via the SEISS pay tax on those grants for the 2021-22 tax year.
Answered by Lucy Frazer
The Government has supported UK households throughout the pandemic with nearly £400 billion of COVID support, including through the Self-Employment Income Support Scheme (SEISS). The SEISS has provided over £28 billion in grants to 2.9 million individuals.
The Government does not think it is right to allow SEISS recipients to alter the rate of tax paid on that income over time. The SEISS was designed to support those whose income had dropped temporarily due to COVID-19. Like self-employed income, SEISS grant payments are subject to Income Tax and self-employed National Insurance contributions at the recipient’s rate of Income Tax in the year it was received.
The Government has implemented an unprecedented package of support for taxpayers struggling with paying tax liabilities. HMRC has scaled up its longstanding Time to Pay policy, which allows any business or individual in temporary financial difficulty to schedule their tax debts into affordable, sustainable, and tailored instalment arrangements. Anyone experiencing difficulties paying their tax bill can discuss payment options with HMRC.
Asked by: Jonathan Edwards (Independent - Carmarthen East and Dinefwr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what data his Department holds on the number of penalties issued for non compliance with IR35 regulations.
Answered by Lucy Frazer
HMRC cannot provide data that might disclose details about identifiable taxpayers. Following the 2017 reform of the off-payroll working rules in the public sector and the extension of this reform to medium and large-sized businesses outside the public sector from April 2021, HMRC undertakes compliance checks to ensure compliance with the rules.
HMRC has committed to taking a light touch approach to penalties in the first year of the reform. This means that unless there is evidence of deliberate non-compliance organisations will not have to pay penalties for mistakes relating to the off-payroll working rules made during the first year, regardless of when mistakes are identified. However, organisations will need to pay any tax due as a result of any errors identified. Where HMRC does impose a penalty for ‘careless’ behaviour, they will always consider whether that penalty can be suspended.
Asked by: Jonathan Edwards (Independent - Carmarthen East and Dinefwr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to equalise National Insurance contributions of agency employers and employees with PAYE employers and employees.
Answered by Lucy Frazer
It is already the case that most agency workers must be treated as employees for Income Tax and National Insurance contributions (NICs) purposes by the agencies which supply them to the recipients of the workers’ services.
Agencies are required to make deductions of Income Tax and employee NICs, where these are due, from the workers’ pay in the same way and at the same level as with direct employees. The agencies will also be liable to pay employer NICs, where these are due, in respect of payments to the workers.