Asked by: Nicholas Dakin (Labour - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many criminal convictions there have been of promoters of loan schemes subject to the 2019 Loan Charge.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The information you have requested is not available. HMRC are working through the settlement process with those Disguised Remuneration users who came forward to settle their tax affairs before 5 April 2019.
Scheme users who chose not to repay the outstanding loan, or agree a settlement with HMRC, by 5 April 2019, are now liable for the loan charge and should report it as part of their 2018-19 tax liability.
To date, no promoters of disguised remuneration (DR) schemes have been convicted of criminal offences related to DR schemes as such. There are no criminal offences specific to the promotion of mass marketed tax avoidance schemes but HMRC may conduct a criminal investigation into an individual’s actions when, for example, reliance is placed on a false or altered document, or if the material facts are misrepresented. In May, six individuals were arrested on suspicion of promoting fraudulent loan charge arrangements.
Since the formation of HMRC’s Fraud Investigation Service on 1 April 2016, more than 20 individuals have been convicted for offences relating to arrangements which have been promoted and marketed as tax avoidance schemes, resulting in over 100 years in custodial sentences. A significant number of avoidance scheme promoters are currently under criminal investigation by HMRC.
Asked by: Nicholas Dakin (Labour - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will undertake an investigation of the steps that HMRC has taken in respect of the application of the 2019 Loan Charge to people on low incomes.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Disguised Remuneration (DR) schemes are contrived arrangements that use loan payments in place of ordinary remuneration, usually through an offshore trust, with the purpose of avoiding income tax and National Insurance contributions.
HM Revenue and Customs (HMRC) are building a dedicated team focused solely on working with those who may be struggling to pay the loan charge by the normal payment deadline. For those seeking to settle their DR liabilities, or to pay the loan charge, HMRC will work with any individuals, regardless of income, to reach a manageable and sustainable payment plan wherever possible. There are no maximum payment periods.
Asked by: Nicholas Dakin (Labour - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether officials in his Department have had discussions with officials in the Department for Business, Energy and Industrial Strategy on the UK Steel charter.
Answered by Robert Jenrick
We have discussed the procurement of steel with the Department for Business, Energy and Industrial Strategy, which has asked all government departments to consider guidance on steel procurement and to notify of any upcoming opportunities for industry.
More broadly, the government is committed to supporting the steel sector to realise the broader commercial opportunities that are open to it. The Chancellor announced at the last Budget that we are establishing the Industrial Energy Transformation Fund – backed by up to £315 million of investment – to help businesses with high energy use (including steel companies) to cut their bills and transition UK industry to a low carbon future. We are also providing up to £66m through the Industrial Strategy Challenge Fund to help steel and other foundation industries develop radical new technologies.
Asked by: Nicholas Dakin (Labour - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will sign his Department up to the UK Steel charter.
Answered by Robert Jenrick
We have discussed the procurement of steel with the Department for Business, Energy and Industrial Strategy, which has asked all government departments to consider guidance on steel procurement and to notify of any upcoming opportunities for industry.
More broadly, the government is committed to supporting the steel sector to realise the broader commercial opportunities that are open to it. The Chancellor announced at the last Budget that we are establishing the Industrial Energy Transformation Fund – backed by up to £315 million of investment – to help businesses with high energy use (including steel companies) to cut their bills and transition UK industry to a low carbon future. We are also providing up to £66m through the Industrial Strategy Challenge Fund to help steel and other foundation industries develop radical new technologies.
Asked by: Nicholas Dakin (Labour - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of (a) reducing the amount employers pay into the apprenticeship levy and (b) extending the amount of time before funds expire; and if he will make a statement.
Answered by Elizabeth Truss
The Apprenticeship Levy has been set at a level that raises sufficient funds to support the starts we expect to generate. Once levy funds enter employers’ accounts, they can be used to pay for training for 24 months before they begin to expire on a rolling, month-by-month basis. Income from the levy is also used to fund apprenticeship training for non-levy paying employers.
We will keep our funding policy under review to ensure that apprenticeships continue to be affordable and offer value for money for the taxpayer.
Asked by: Nicholas Dakin (Labour - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 23 April 2019 to Question 243425, what proportion of the £8.8 billion his Department estimates will be paid into the apprenticeship levy between 2019 and 2022 will be spent on apprenticeships; and if he will make a statement.
Answered by Elizabeth Truss
The Apprenticeship Levy was introduced on a UK wide basis from 6 April 2017. Employers are charged at 0.5% of their pay bill over £3 million. In 2018-19, £2.7 billion was raised from the levy.
Employers’ levy funds are distinct from the Department for Education’s ring-fenced apprenticeship budget, which is set to fund apprenticeships in England only. The budget has been set in advance for the current spending review period (to 2019-20). The budget was £2.2 billion for the 2018-19 financial year and it will rise to over £2.5 billion in 2019-20 – double what was spent on apprenticeships in 2010. Currently, we expect to remain within budget in the 2018/19 and 2019/20 financial years. The programme budgets for 2020/21 and beyond will be determined by the forthcoming Spending Review.
The apprenticeship budget is used to fund new apprenticeship starts in levy and non-levy paying employers and to cover the ongoing costs of apprentices that are already in training. A detailed breakdown of spending for 2018-19 will be published in the Education and Skills Funding Agency Annual Report and Accounts.
Asked by: Nicholas Dakin (Labour - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to run a budget (a) surplus or (b) deficit for the apprenticeship levy in (i) 2019, (ii) 2020, (iii) 2021 and (iv) 2022; and if he will make a statement.
Answered by Elizabeth Truss
The Apprenticeship Levy was introduced on a UK wide basis from 6 April 2017. Employers are charged at 0.5% of their pay bill over £3 million. In 2018-19, £2.7 billion was raised from the levy.
Employers’ levy funds are distinct from the Department for Education’s ring-fenced apprenticeship budget, which is set to fund apprenticeships in England only. The budget has been set in advance for the current spending review period (to 2019-20). The budget was £2.2 billion for the 2018-19 financial year and it will rise to over £2.5 billion in 2019-20 – double what was spent on apprenticeships in 2010. Currently, we expect to remain within budget in the 2018/19 and 2019/20 financial years. The programme budgets for 2020/21 and beyond will be determined by the forthcoming Spending Review.
The apprenticeship budget is used to fund new apprenticeship starts in levy and non-levy paying employers and to cover the ongoing costs of apprentices that are already in training. A detailed breakdown of spending for 2018-19 will be published in the Education and Skills Funding Agency Annual Report and Accounts.
Asked by: Nicholas Dakin (Labour - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the amount employers pay into the apprenticeship levy will increase in (a) 2020, (b) 2021 and (c) 2022; and if he will make a statement.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The Apprenticeship Levy was introduced on a UK wide basis from 6 April 2017. Employers are charged at 0.5% of their pay bill over £3 million. The latest receipts forecast for the Apprenticeship levy is published by Office for Budget Responsibility which can be found online at:
https://obr.uk/efo/economic-fiscal-outlook-march-2019
In 2019-20, 2020-21, and 2021-22, it is forecasted that employers will pay £2.8bn, £2.9bn, and £3.1bn respectively into the Apprenticeship Levy.
Asked by: Nicholas Dakin (Labour - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to minimise (a) administration costs, (b) delays and (c) complexities of transporting UK steel sector products to the EU in the event of the UK leaving the EU without a deal.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Delivering a deal negotiated with the EU remains the Government’s top priority. However, in the event of a ‘no deal’ HMRC will prioritise the flow of trade, ensuring the border remains secure, while collecting the taxes due.
The government published its long-term economic analysis in November 2018. This set out, by sector, the high level impact on the UK from different EU Exit scenarios, to include for manufactured steel goods.
Although the treatment of goods exported from the UK into the EU in a ‘no deal’ scenario will be a matter for the EU, to minimise delays and associated complexity, the UK has negotiated re-accession to the Common Transit Convention (CTC). This allows both imported and exported goods to move smoothly across international borders without the payment of duties until they reach their final destination. In addition to facilitating the flow of trade, CTC reduces administrative costs by removing the need for multiple import/export declarations and associated customs duties as goods move through different territories. Information on CTC can be found here.
To help businesses prepare, HMG has made available £8million to train customs agents and to increase capacity in the customs agent market.