Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made a recent assessment of the potential merits of increasing tax on the tobacco industry.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government is unable to speculate on tax measures outside of fiscal events. As with all taxes, the Government keeps tobacco duty rates under review during its yearly Budget process.
The Government publishes tax information and impact notes (TIINs) for tax policy changes when the policy is final or near final. The summary of impacts from the latest changes to tobacco duty at Spring Budget 2023 can be found here: https://www.gov.uk/government/publications/tobacco-duty-changes-to-rates/changes-to-tobacco-duty-rates-from-15-march-2023
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Office for Tax Simplification's (OTS) evaluation paper on the High Income Child Benefit Charge, whether steps have been taken to progress recommendations relating to the high income child benefit charge made in the OTS's 2019 Life Events review.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government was grateful to the Office of Tax Simplification (OTS) for their suggestions for how the individual’s experience of Child Benefit and the High Income Child Benefit Charge (HICBC) could be improved.
The OTS acknowledged that HM Revenue and Customs (HMRC) has made progress following their ‘Simplifying everyday tax for smaller businesses’ and the ‘Life events review: simplifying tax for individuals’ reports from 2019. This has included improving the Child Benefit form to ensure that it is clear that the form should be completed, even where the parents may wish to opt out of getting Child Benefit payments. HMRC has also undertaken customer research to explore Child Benefit claimants’ understanding of HICBC, benefits of claiming and the reasons why some do not make a claim.
HMRC has taken considerable steps to raise awareness of the HICBC. It currently shares information via social media, through third parties such as websites aimed at parents or families, and on GOV.UK. HMRC writes to around 70,000 customers each year to remind them what they need to do to pay the HICBC.
HMRC are also delivering on the Government’s commitment, made in July 2023, to enable employed individuals to pay the HICBC through their tax code, removing the need to register for Self Assessment. This will make the process of paying the charge simpler for individuals who become liable to the charge, reaffirming the Government’s commitment to a simpler and fairer tax system. The Government will provide further detail in due course.
In addition, the Government recognises concerns that some eligible parents who have not claimed Child Benefit could miss out on their future entitlement to a full State Pension. This is why at Tax Administration and Maintenance Day on 28 April 2023, the Government announced that it will address this issue to enable affected parents to receive a National Insurance credit retrospectively. Further details of next steps will be set out in due course.
The OTS’ findings continue to inform HMRC’s ongoing work
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 6 September 2023 to Question 196959 on High Income Child Benefit Tax Charge, if he will undertake a review of the income thresholds for the payment of the High Income Child Benefit Charge.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government is committed to managing the public finances in a disciplined and responsible way.
The Adjusted Net Income threshold of £50,000 for the High Income Child Benefit Charge (HICBC) means that the Government continues to support the majority of Child Benefit claimants, whilst ensuring that the fiscal position remains sustainable. The Government therefore considers that the current threshold remains appropriate.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 6 September 2023 to Question 196959 on High Income Child Benefit Tax Charge, if he will list all tax charges that his Department has reviewed since January 2013.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government keeps all taxes under review unless otherwise stated.
Since 9 December 2010, HMRC have published Tax Information and Impact Notes (TIINs) alongside tax legislation. A full list of TIINs can be found here: https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.
The Government also publishes a list of open and closed tax consultations since 2020. This list can be found here: https://www.gov.uk/government/collections/tax-policy-consultations#closed-consultations-.
Finally, a list of completed and ongoing HMRC research can be found here: https://www.gov.uk/search/research-and-statistics?parent=hm-revenue-customs&content_store_document_type=research&organisations%5B%5D=hm-revenue-customs&order=updated-newest.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to include social-related disclosures in the Sustainability Disclosure Requirements regime.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Sustainability Disclosure Requirements (SDR) form a framework to facilitate and streamline the flow of sustainability information between corporates, consumers, investors, and capital markets.
The Government seeks to establish a balance between SDR requirements and not placing unique administrative burdens on businesses.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department are taking to improve information sharing across HMRC.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC is working towards the implementation of its Data Strategy and policies to ensure that the organisation makes best use of its data in accordance with its intended purpose and in line with its statutory obligations. Recent improvements include establishing a data governance framework and enhancing capabilities within HMRC to better manage our data and to ensure the reliability, validity and integrity of the data is maintained.
We only share HMRC information where it is legal to do so to protect taxpayer confidentiality.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to correspondence of 19 July 2023 to HM Treasury from the fintech industry, whether his Department plans to update to the 2018 Report entitled The impact of improved transparency of foreign money transfers for consumers and SMEs; if his Department will take steps to implement the mid-market exchange rate as a basis for all cross-border transfers made from financial institutions in the UK that require mark-ups over the mid-market rate to be clearly displayed; and if he will set out a timeline for the introduction of price transparency in cross-border transfers and FX rates.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers and enabling consumers to make informed choices.
There are a number of existing requirements both in payments legislation and in FCA rules in relation to providing information on fees and conversion rates. The Government invited views on information requirements through its recent Call for Evidence on the Payment Services Regulations 2017, which also sought views on the Cross Border Payments Regulation and its requirements in relation to currency conversion transparency.
The Government will take these views into consideration as it determines its approach to the UK’s future regulatory framework, as part of the Smarter Regulatory Framework (SRF) programme to repeal retained EU law in financial services, and replace it with legislation and rules designed for the UK. The Government will publish its response to the Call for Evidence in due course.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report of the Behavioural Insights Team entitled The impact of improved transparency of foreign money transfers for consumers and SMEs, published March 2018, whether his Department plans to implement that report's recommendations in its Payment Services Regulations Review.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers and enabling consumers to make informed choices.
There are a number of existing requirements both in payments legislation and in FCA rules in relation to providing information on fees and conversion rates. The Government invited views on information requirements through its recent Call for Evidence on the Payment Services Regulations 2017, which also sought views on the Cross Border Payments Regulation and its requirements in relation to currency conversion transparency.
The Government will take these views into consideration as it determines its approach to the UK’s future regulatory framework, as part of the Smarter Regulatory Framework (SRF) programme to repeal retained EU law in financial services, and replace it with legislation and rules designed for the UK. The Government will publish its response to the Call for Evidence in due course.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to use the Payment Services Regulations Review to introduce price transparency in cross-border transfers and FX rates for consumers and SMEs.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers and enabling consumers to make informed choices.
There are a number of existing requirements both in payments legislation and in FCA rules in relation to providing information on fees and conversion rates. The Government invited views on information requirements through its recent Call for Evidence on the Payment Services Regulations 2017, which also sought views on the Cross Border Payments Regulation and its requirements in relation to currency conversion transparency.
The Government will take these views into consideration as it determines its approach to the UK’s future regulatory framework, as part of the Smarter Regulatory Framework (SRF) programme to repeal retained EU law in financial services, and replace it with legislation and rules designed for the UK. The Government will publish its response to the Call for Evidence in due course.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to mitigate the impact of rising prices on the incomes of families affected by the High Income Child Benefit Charge.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The threshold for High Income Child Benefit Charge affects taxpayers who are generally on comparatively high incomes. In 2020-21, (the latest year that data is available), 99.7% of those who declared a liability for HICBC paid income tax at the higher rate or above, and 88% of Child Benefit claimants were unaffected by the HICBC.
The Government is committed to supporting families with the pressures they are facing from rising prices. Families who are liable to the HICBC will benefit from the Energy Price Guarantee (EPG), energy bill support scheme and the cancelled planned increase in fuel duty. Moreover, the Government extended the free hours for childcare offers at Spring Budget 2023, so that eligible working parents in England are able to access 30 hours of free childcare per week for 38 weeks per year from when their child is 9 months old, to when they start school.