Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what penalties are in place for people who have been found to have misused the Coronavirus Job Retention Scheme.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Those who submit claims to HMRC for payment under CJRS are required to state that any money paid by HMRC will be used for the specified purposes. Any claimant who states that the payment will be used for the proper purposes when this is not the case is likely to have committed a criminal offence.
In England and Wales, and in Northern Ireland, it is a crime of fraud, contrary to the Fraud Act 2006, dishonestly to make a false representation with intent to make a gain. Those who dishonestly state in their claims to HMRC that any money they receive under CJRS will be used for the specified purposes, when this is not the case, are likely to have committed fraud. Those who encourage or assist the commission of a crime can also be found guilty of the offence. Those who aid and abet another’s crime can also be convicted.
In Scotland, those who engage in a false pretence with an intention to deceive HMRC will commit a common law fraud. Such a false pretence could include saying that the payment under CJRS will be used for the specified purposes when this is not the case. Those who act in concert with the perpetrator of such crimes can also be convicted and punished.
In all parts of the UK, where claimants obtain payments from HMRC through fraudulent claims to the CJRS scheme, any money obtained would be the proceeds of crime. Any dealing with this fraudulent obtained money could amount to the offence of money laundering, contrary to the Proceeds of Crime Act 2002. The money laundering offences contrary to the Proceeds of Crime Act 2002 are punishable with a sentence of imprisonment of up to 14 years, a fine without limit, or both. Fraudulently obtained payments can also be recovered through the provisions of the Proceeds of Crime Act dealing with summary forfeiture of assets representing the proceeds of crime.
HMRC will subject CJRS claims to scrutiny and use their usual compliance tools to carry out proportionate risk-based compliance checks before and after payment to test the veracity of CJRS claims. HMRC will take robust steps to prevent fraudulent claims being paid, to recover any payments made to those who are not eligible, and to respond to those to make fraudulent claims. In doing so HMRC will protect essential public services and the livelihoods at risk during these challenging times.
In addition to the fraud powers outlined above, the Government has published for external views draft legislation that will enable HMRC to undertake civil investigations with appropriate powers and sanctions. These powers include compliance powers and proposed penalties for deliberate non-compliance, where appropriate. The draft legislation can be found at
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of requiring employers to offer furlough to employees who have been instructed to shield during the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has set out an unprecedented package of financial support to help the country through the coronavirus pandemic, including the Coronavirus Job Retention Scheme (CJRS), the Self-Employed Income Support Scheme and Statutory Sick Pay.
The CJRS will run until the end of October and the Government is working to ensure those who are shielders can access the financial assistance that they need.
While there is no obligation for employers to place staff on furlough, the Government encourages all?firms?affected by coronavirus to treat their employees fairly and carefully. Employees who are unable to work because they are shielding in line with public health guidance (or need to stay home with someone who is shielding) can be furloughed. Those who are shielding in line with public health guidance, or are required to stay home due to an individual in their household shielding and are unable to work from home, should speak to their employer about whether they plan to place staff on furlough.
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans his Department has to increase the Uniform Tax Rebate rate for NHS staff and other workers who have had to wash their uniforms at higher temperatures than usually expected as a result of the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government is proud of the extraordinary commitment shown by all health and care staff in the fight against COVID-19.
More than one million NHS workers continue to benefit from the three-year Agenda for Change pay deal, under which the starting pay for a newly qualified nurse has increased by over 12% since 2017/18.
Flat rate expenses for uniforms are based on the average cost of cleaning a uniform and vary by profession. Individuals may claim for actual expenses if this is more beneficial.
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the judgment of Shields and Sons Partnership v The Commissioners for HM Revenue and Customs [2017] UKUT 0504, whether he plans to reinstate farmers that have been excluded from the flat rate VAT Scheme as a result of obtaining a greater benefit from that scheme than a VAT registration.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Agricultural Flat Rate Scheme (AFRS) is intended for use by small agricultural businesses and was designed to provide relief for those businesses facing administrative burdens from standard VAT obligations.
Following the judgement of the Court of Justice of the European Union (CJEU) and the Upper Tribunal, Shields & Sons Partnership was reinstated to the AFRS. Other agricultural businesses removed from the scheme did not appeal HMRC’s decision and subsequent appeals are out of time. These businesses will not be automatically reinstated to the scheme.
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will publish an assessment of the potential effect on the hospitality and tourism sectors of the introduction of vehicle excise duty on motorhomes.
Answered by Simon Clarke
This Government is committed to supporting the tourism and leisure industries in the United Kingdom.
However, we are also committed to achieving our climate change targets. Road transport is responsible for almost a quarter of UK domestic greenhouse gas emissions. As such, the Government believes it is right that road vehicles are taxed in accordance with their environmental impact.
I have met with representatives of the industry and I am sensitive to their concerns. As with all taxes, the Government keeps the VED treatment of motorhomes under review. Any changes will be considered by the Chancellor and announced at fiscal events.
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential effect of Air Passenger Duty on inter-regional trade outside London.
Answered by Simon Clarke
As announced on 14 January, HM Treasury is undertaking a review of Air Passenger Duty to ensure regional connectivity is strengthened while meeting the UK’s climate change commitments to achieve net zero emissions by 2050.
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make VAT on female sanitary products zero-rated.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government will replace the 5% reduced VAT rate with a zero rate as soon as it is legally able to do so. Until then, a £15 million annual Tampon Tax Fund has been put in place to support women’s charities. This provides funding equivalent to the VAT raised on women’s sanitary products.
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his Department's definition of fully disclosed information is in the letter from the Financial Secretary to the Treasury entitled Disguised Remuneration Loan Charge, dated 18th July 2019.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HM Revenue and Customs (HMRC) will not apply the loan charge to a tax year where an enquiry was closed on the basis of fully disclosed information.
This applies where an individual has provided details about their use of a disguised remuneration scheme to HMRC, for example on their tax return, HMRC have opened an enquiry, and HMRC have subsequently closed their enquiry without making an adjustment to the tax position in respect of that scheme. In these instances HMRC will not apply the loan charge to the outstanding loan balance for that year.
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of (a) removing and (b) raising the lifetime pension cap for public sector employees.
Answered by Elizabeth Truss
The Government is committed to public service pensions which are fair to workers and fair to other taxpayers. Public service workers are entitled to defined benefit pension schemes, which are among the best schemes available. Since 2010, the Government has made reforms to limit pensions tax relief for those on the highest incomes that save over £6 billion per year, and are necessary to deliver a fair system and protect the public finances.
The pension tax rules apply equally across all registered public and private sector defined benefit schemes. In April 2016, the lifetime allowance (LTA) was reduced to £1,000,000. However, from April 2018 it has increased in line with CPI. This means for 2019-20 the LTA increased to £1,055,000. This allows savers to continue to make significant amounts of pension savings tax-free, while ensuring incentives to save are targeted across society.
The LTA affects only the wealthiest pension savers. Around 95 per cent of individuals currently approaching retirement have a pension pot worth less than the LTA, while the median pension pot for individuals approaching retirement is around £170,000.
The Government does keep all aspects of the tax system under review through the annual Budget process, in the context of the wider public finances.