Asked by: Paul Bristow (Conservative - Peterborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how his Department works with HMRC to help ensure that VAT rulings are equitable to all stakeholders; and whether his Department monitors the appeals process of those decisions.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HM Treasury has no statutory authority over the application of VAT rulings or the appeals process of those decisions; this is wholly within the remit of HM Revenue and Customs. HM Revenue and Customs apply the law objectively to ensure that businesses apply the tax rules correctly.
Asked by: Paul Bristow (Conservative - Peterborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support is available for self-employed people in the entertainment sector during the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government recognises the impact that closures across the country will have on the entertainment industry, as well as those who work within it, and remains committed to supporting the sector through the impact of the pandemic.
The Culture Recovery Fund has already supported a wide range of cultural organisations, including venues, festivals and theatres. The £1 billion already committed has supported 3,000 organisations and more than 75,000 jobs. The remaining £400m of Culture Recovery Fund grants and loans announced on 11 December will support significant cultural organisations and those who work within them who now face financial distress as a result of closure, as well as helping them transition back to fuller opening in the spring.
Further, the third grant of the Self-Employment Income Support Scheme (SEISS) will be available to self-employed individuals, including those working within the entertainment sector, who have been affected by reduced demand or have been unable to trade due to COVID-19, which they believe will lead to a significant reduction in their trading profits.
The online service for the third grant is open to claims until 29 January 2021. Guidance on who can claim has been published on gov.uk: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme.
There will also be a fourth grant covering February to April 2021. The Government will set out further details, including the level of the fourth grant, in due course.
Moreover, the SEISS continues to be just one element of a substantial package of support for the self-employed. Those ineligible for the SEISS may still be eligible for other elements of the support available. The Universal Credit standard allowance has been temporarily increased for 2020-21 and the Minimum Income Floor relaxed for the duration of the crisis, so that where self-employed claimants' earnings have fallen significantly, their Universal Credit award will have increased to reflect their lower earnings. In addition to this, they may also have access to other elements of the package, including Bounce Back loans, tax deferrals, rental support, mortgage holidays, self-isolation support payments and other business support grants.
Asked by: Paul Bristow (Conservative - Peterborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment the Government has made of the potential merits of changing the rules governing Save As You Earn (SAYE) schemes to make resignation from an employer a good leaver reason.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Save As You Earn (SAYE) is a scheme that allows employees to save up to £500 a month over a three or five year savings contract. Savings can be taken as cash, or used to purchase tax-advantaged company shares at a price determined at the start of the contract. The scheme is intended to support staff retention and engagement, by encouraging employees to regularly save towards a financial reward offered by the employer.
The SAYE scheme allows businesses to distinguish between a “good leaver” and a “bad leaver” if an employee leaves within the agreed savings period. The Government believes that these current rules are an appropriate way to support the policy’s aims. “Good leavers”, such as those who leave the company on retirement or redundancy, can retain the scheme's tax advantages when exercising their share options. Where employees leave the company voluntarily, they can still withdraw their accrued savings in the scheme, but do not receive tax advantaged shares. No assessment has been made of making resignation from an employer a “good leaver” reason.
The Government keeps all taxes and reliefs under review.
Asked by: Paul Bristow (Conservative - Peterborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing the Share Incentive Plan (SIP) holding period from five to three years.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Share Incentive Plans (SIPs) are tax-advantaged employee share schemes, intended to encourage businesses to share financial rewards with their staff, to help to motivate their workforce, support productivity and recruit and retain staff.
SIPs provide generous tax reliefs on shares, including exemption from IT and NICs, and CGT benefits if shares are kept in the plan until sold. To receive the full tax relief, shares must be held for at least five years. The Government believes this is an appropriate length of time to support the policy’s aims to assist staff retention and improved productivity, as well as helping to align company and employee interests.
The Government keeps all taxes and reliefs under review.