Asked by: Richard Thomson (Scottish National Party - Gordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to publish the final report of the Net Zero Review; and whether that report will include an analysis on the potential merits of using hydrogen to decarbonise the UK steel industry.
Answered by Kemi Badenoch - President of the Board of Trade
The Net Zero Review will be published in due course and in advance of COP26.
The final report will be a high-level analytical report that uses existing data to explore the key issues and trade-offs as the UK decarbonises. Against a backdrop of significant uncertainty on technology and costs, as well as changes to the economy over the next 30 years, it will focus on the potential exposure of households and sectors to the transition, and highlight factors to be taken into account in designing policy that will allocate costs over this time horizon.
The Net Zero Review will not include specific analysis of the merits of using hydrogen to decarbonise the UK steel industry. However, earlier this year the Government published the Industrial Decarbonisation Strategy, setting out its overall approach to reducing emissions from the industrial sector. This includes how we will support fuel switching to low carbon hydrogen in industries such as steel.
The Government is also committed to exploring the development of hydrogen as a strategic decarbonised energy carrier, alongside electricity and other decarbonised gases. Hydrogen could be an important part of the transition to Net Zero and has the potential to help the economy recover in a stronger, cleaner and more sustainable way.
Finally, the Government is investing directly in hydrogen, having announced a £240m Net Zero Hydrogen Fund at Spending Review (SR) 20 which aims to kick-start low carbon hydrogen production in the UK.
Asked by: Richard Thomson (Scottish National Party - Gordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of how duty free in arrival stores will benefit the UK’s travel industry.
Answered by Kemi Badenoch - President of the Board of Trade
Duty-free on arrival did not form part of the Government's consultation on the potential approach to duty-free and tax-free goods arising from the UK’s new relationship with the EU, which took place in the Spring of 2020. The Government nonetheless acknowledged in the summary of responses to the consultation that some stakeholders had requested the introduction of duty-free on arrival. This set out that duty-free on arrival was not a scheme that the Government previously offered and was therefore not considering implementing the scheme at that time.
Asked by: Richard Thomson (Scottish National Party - Gordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking in relation to (a) people and (b) companies that promoted payroll loan schemes.
Answered by Jesse Norman
The Government and HMRC are determined to continue to tackle promoters of tax avoidance schemes. This includes challenging the entities and individuals who promote disguised remuneration loan schemes.
On 19 March 2020, HMRC published their strategy for tackling promoters of tax avoidance schemes. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust action against promoters of tax avoidance. The Promoter Strategy is available on GOV.UK.
Asked by: Richard Thomson (Scottish National Party - Gordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support he plans to give to people who experienced mis-selling of schemes that are now subject to the Loan Charge.
Answered by Jesse Norman
While the Government sympathises with anyone who believes they were misled into using a disguised remuneration (DR) scheme, it is an individual’s responsibility to ensure the accuracy of their tax return and to understand the consequences of their decisions. It remains right that the Government takes action to tackle tax avoidance, which is unfair to the vast majority of taxpayers who pay the correct tax.
HM Revenue and Customs (HMRC) have been clear on their commitment to support all taxpayers who may need help to pay their Loan Charge liabilities. Where a taxpayer cannot afford to pay in full on time, HMRC will seek to agree payment by instalments with them. The payment plan agreed will be based on what the taxpayer can afford and there is no upper limit over how long HMRC can potentially spread payments.
HMRC have published settlement terms for taxpayers subject to the Loan Charge. These settlement terms are available on GOV.UK at: https://www.gov.uk/government/publications/disguised-remuneration-settlement-terms-2020/disguised-remuneration-settlement-terms-2020.
Asked by: Richard Thomson (Scottish National Party - Gordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of how many contractors worked for HMRC while using disguised remuneration schemes.
Answered by Jesse Norman
HM Revenue and Customs (HMRC) are aware of 15 contractors who have used disguised remuneration (DR) schemes while engaged either by the department or by Revenue & Customs Digital Technology Services (RCDTS). In each of the cases, the contractors were engaged via an agency or a company providing a service.
HMRC do not engage in, or enter into, disguised remuneration schemes. It is possible for a contractor providing services to HMRC to use a disguised remuneration scheme without the department’s knowledge or participation. Where HMRC become aware of a contractor who is using a disguised remuneration scheme, they take robust compliance action, including the immediate termination of the engagement. Any contractor identified in the course of HMRC’s compliance work as a scheme user would be investigated in the same way as any other contractor.
Asked by: Richard Thomson (Scottish National Party - Gordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of people in settlement discussions with HMRC on the Loan Charge have to date reached settlement.
Answered by Jesse Norman
Her Majesty’s Revenue and Customs (HMRC) are assuring disguised remuneration settlement data received to date. This includes data on those taxpayers who were unable to meet the 30 September settlement deadline for reasons beyond their control who are continuing settlement discussions.
Information on settlements will be included in HMRC’s report to Parliament on the implementation of the independent Loan Charge Review, due before the end of the year.
At the time of the independent review of the Loan Charge, about 12,000 employers and individuals still had the opportunity to keep clear of the Loan Charge by concluding settlement, having provided all the relevant information to HMRC by 5 April 2019. Indications are that as at 2 October about 60 per cent of these have either settled, informed HMRC that they had instead decided to report and pay the Loan Charge, or have been taken out of scope of the Loan Charge following the Government’s changes in response to the independent review.
Asked by: Richard Thomson (Scottish National Party - Gordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when the Chief Secretary to the Treasury plans to reply to the correspondence from Stewart Stevenson MSP of 3 July 2020, 8 September 2020 and 14 October 2020, Treasury correspondence reference MC2020/00724.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
I have responded to Mr Stevenson’s letter and a copy has been sent by email on 9th Nov.