Asked by: Mike Penning (Conservative - Hemel Hempstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the letter from the HM Treasury Correspondence and Enquiry Unit of 2 July 2020 to the hon. Member for Hemel Hempstead, ref MC2020/19806, on irrecoverable VAT in the homecare sector, if he will change the VAT status of social care services to zero-rated rather than exemption.
Answered by Jesse Norman
Under the current VAT rules, many care services provided by charities, public bodies and regulated private welfare institutions are exempt from VAT, meaning no VAT is charged on their services. The Government has no plans to review the VAT treatment of these services at present.
Asked by: Mike Penning (Conservative - Hemel Hempstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 6 July to Question 65099 on Coronavirus Job Retention Scheme: Directors, what assessment he has made of the potential merits of using the 2018-19 submissions for company directors on annual payroll schemes in the same was as for the Self-Employment Income Support Scheme; and if he will make a statement.
Answered by Jesse Norman
For an employee to be eligible for the CJRS they must have been notified to HMRC on a real-time information (RTI) submission on or before 19 March. Those paid annually are eligible to claim, as long as they meet the relevant conditions. These conditions include being notified to HMRC on an RTI submission on or before 19 March 2020, which relates to a payment of earnings in the 2019/2020 tax year. Anyone paid annually and notified on an RTI submission after that date will not be eligible for the scheme, which puts them in the same position as those who are paid more frequently and weren’t notified to HMRC on or before 19 March. The 19 March cut-off date allows as many people as possible to be included, by going right up to the day before the announcement and balances the risk of fraud that existed as soon as the scheme became public.
Asked by: Mike Penning (Conservative - Hemel Hempstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made on extending the eligibility for VAT reductions in the Accommodation and Food Services sector to kennel and cattery businesses.
Answered by Jesse Norman
In light of the Covid-19 outbreak, the Chancellor has introduced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates at a cost of more than £300 billion.
The temporary reduced rate of VAT will support the tourism and hospitality sectors and will help over 150,000 businesses and protect over 2.4 million jobs. There are currently no plans to expand the scope of the temporary VAT reduction to include kennel and cattery businesses. However, the Government keeps all taxes under review.
Asked by: Mike Penning (Conservative - Hemel Hempstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the standard of correspondence produced by the Correspondence and Enquiry Unit in his Department in response to enquiries raised during the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
Since March, the Treasury has received over 18,000 items of correspondence from Honourable Members – the largest correspondence volume received of any Government department leading on coronavirus pandemic. Replying to this amount of correspondence while delivering targeted action to protect millions of jobs and livelihoods is a significant challenge for a department of around 1,500 staff. However, the Treasury ensures that every MP receives a timely, accurate and informative reply to their queries. On rare occasions, when MPs have said any replies from the Treasury have not fully covered the issue raised, the department has provided an additional reply covering any outstanding points as soon as possible.
Asked by: Mike Penning (Conservative - Hemel Hempstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support company directors on annual payroll schemes who did not qualify for the Coronavirus Job Retention Scheme as a result of the 19 March RTI deadline; and if he will make a statement.
Answered by Jesse Norman
For an employee to be eligible for the CJRS they must have been notified to HMRC on a real-time information (RTI) submission on or before 19 March. Those paid annually are eligible to claim, as long as they meet the relevant conditions including being notified to HMRC on an RTI submission on or before 19 March 2020, which relates to a payment of earnings in the 2019/2020 tax year. Anyone paid annually and notified on an RTI submission after that date will not be eligible for the scheme, which puts them in the same position as those who are paid more frequently and were not notified to HMRC on or before 19 March.
The Government has sought to prioritise help for the greatest number of people as quickly as possible. Given this, the CJRS has had to be set up to operate at significant scale and with limited manual intervention. Extending the cut-off date beyond 20 March would have significantly increased the risk of abuse because claims could not be verified against the risk of fraud using the data after this point, when?the scheme became public.
The Government is also supporting people on low incomes who need to rely on the welfare system through a significant package of temporary measures. These include a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1bn increase in support for renters through increases to the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants.?These changes will benefit new and existing claimants.
Asked by: Mike Penning (Conservative - Hemel Hempstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 May 2020 to Question 42946, what discussions he has held with businesses in the haulage industry on the potential need of businesses to access a furlough scheme on a monthly basis to cope with unpredictable business demand through the covid-19 pandemic.
Answered by Jesse Norman
The Government has announced a range of measures to support all businesses, including hauliers, such as the Coronavirus Business Interruption Loan Scheme, the Coronavirus Job Retention Scheme and the Self-Employment Income Support Scheme. The Department for Transport continues to engage with the haulage industry to understand the impact of COVID-19 on the sector.
As the economy re-opens, the Government will support people back into work. The Government announced on 12 May that the Coronavirus Job Retention Scheme will be extended for four months, until the end of October.
From August to October, the scheme will continue for all sectors and regions of the UK, but with greater flexibility to support the transition back to work. Employers currently using the scheme will be able to bring furloughed employees back part-time. The Government will set out full details by the end of May.
Asked by: Mike Penning (Conservative - Hemel Hempstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 May 2020 to Question 42936 on Coronavirus Job Retention Scheme, what contingency plans he has in the event that greater flexibility is needed to support business where demand is unpredictable.
Answered by Jesse Norman
The Government keeps the Coronavirus Job Retention Scheme under review, as well as other schemes to support businesses during COVID-19. It continues to engage with the business community and monitor developments in order to ensure a targeted and effective response.
Asked by: Mike Penning (Conservative - Hemel Hempstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 May 2020 to Question 42942 on Roads: Freight, if he will make an estimate of the cost to the public purse of extending business rates relief to haulage companies for (a) one and (b) six months.
Answered by Jesse Norman
The Government has provided enhanced support to the retail, hospitality and leisure sectors in England through business rates relief given the direct and acute impacts of the COVID-19 pandemic on those sectors.
A range of further measures to support all businesses, including those not eligible for the business rates holiday, such as haulage companies, has also been made available.
The Government is monitoring the sectoral impact of COVID-19 and is keeping all support under review.
Asked by: Mike Penning (Conservative - Hemel Hempstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 11 May 2020 to Question 42938 on Fuels: Excise Duties, what estimate he has made of the number of SMEs that would benefit from a temporary suspension of fuel duty for the logistics sector during the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
This Government is committed to support the logistics sector and haulage businesses in the United Kingdom, which are an essential part of our economy.
Budget announced that fuel duty would be frozen for a tenth consecutive year. This has saved the average van driver £18 and the average haulier £113 per tank of fuel relative to 2011. To deliver this saving for businesses and households, the Government has foregone already £67bn and will forego a further £46bn by the end of 2025 compared to fuel duty rising in line with inflation. Furthermore, HGV Vehicle Excise Duty has been frozen since 2001.
Fuel duty raised £28.0bn in 2018-19, contributing to meeting the costs of vital public services such as the NHS, that are playing a crucial role in aiding the Government’s economic response to the COVID-19 pandemic.
Asked by: Mike Penning (Conservative - Hemel Hempstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 11 May 2020 to Question 42939 on Fuels: Excise Duties, if he will make an estimate of the cost to the public purse of suspending fuel duty on a monthly basis for the logistics industry.
Answered by Kemi Badenoch - President of the Board of Trade
This Government is committed to support the logistics sector and haulage businesses in the United Kingdom, which are an essential part of our economy.
Budget announced that fuel duty would be frozen for a tenth consecutive year. This has saved the average van driver £18 and the average haulier £113 per tank of fuel relative to 2011. To deliver this saving for businesses and households, the Government has foregone already £67bn and will forego a further £46bn by the end of 2025 compared to fuel duty rising in line with inflation. Furthermore, HGV Vehicle Excise Duty has been frozen since 2001.
Fuel duty raised £28.0bn in 2018-19, contributing to meeting the costs of vital public services such as the NHS, that are playing a crucial role in aiding the Government’s economic response to the COVID-19 pandemic.