Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether (a) tax breaks and (b) financial support have been implemented for the self-employed during the coronavirus outbreak.
Answered by Jesse Norman
The Government has announced an unprecedented package of support for businesses and individuals affected by Covid-19, and remains committed to doing whatever it takes to support the economy as necessary.
UK VAT registered businesses, including charities, can defer VAT payments due with their VAT returns between now and the end of June. No UK VAT registered business will have to make a VAT payment alongside their VAT return to HMRC in that period. They will have until the end of the financial year to repay.
The Government will also give all eligible retail, hospitality and leisure businesses in England a 100% business rates holiday for the next 12 months. The Government also extended the support available to individuals and businesses, including a package of government-backed and guaranteed loans, which make available an initial £330 billion of guarantees – equivalent to 15% of GDP.
For Income Tax Self-Assessment, payments due on the 31st of July 2020 will be deferred until the 31st of January 2021.
Under the Coronavirus Job Retention Scheme, employers (including charities) can put workers on temporary leave and the government will pay them cash grants of 80% of their wages up to a cap of £2,500 a month, providing they keep the worker employed. They will receive the grant from HMRC, covering the cost of wages backdated to 1 March 2020.
Statutory Sick Pay (SSP) will be available for those unable to work because they are self-isolating in line with government advice; this is on top of the Prime Minister’s announcement that SSP will be payable from day 1 instead of day 4 for affected individuals. Support will be available through Universal Credit and Contributory Employment and Support Allowance for those not eligible for SSP.
HMRC have scaled up their Time to Pay offer to all taxpayers, including charities, who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities. Taxpayers can contact HMRC’s dedicated Covid-19 helpline to get practical help and advice on 0800 0159 559.
The Chancellor will continue to review and make further announcements as events unfold if required.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with insurance companies that will not pay out insurance monies to their customers on the basis that the covid-19 has not yet been put on their list of infectious diseases.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation. Most businesses have not purchased insurance policies that cover unspecified notifiable diseases, such as COVID-19. Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers.
In addition, the FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed.
On Tuesday 17 March the Chancellor announced that the Government would do whatever it takes to get our nation through the impacts of COVID-19 and that he stands ready to announce further action wherever necessary.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that people that can no longer travel as a result of the outbreak of covid-19 can claim compensation through their travel insurance.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
On Tuesday 17 March the Chancellor announced that as the wider economic picture becomes clearer, the Government would do whatever it takes to get our nation through the impacts of COVID-19 and that he stands ready to announce further action wherever necessary. The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation.
In the first instance, customers who can no longer travel should seek compensation from their travel providers. Many UK carriers are offering vouchers, free rebooking or refunds.
Further, on 17 March the Foreign and Commonwealth Office advised against all non-essential travel abroad. Generally, insurance for cancellation or travel disruption will be triggered by FCO advice. This decision will therefore allow policyholders to claim for cancelled trips that were already booked and cannot now go ahead, if they have the relevant cancellation or travel disruption cover in place.
In addition, the FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to freeze fuel duty.
Answered by Jesse Norman
The Government recognises that transport is a significant cost for households and businesses, and at Budget 2018 the main rate of fuel duty was frozen for the ninth successive year, saving the average car driver £1000 since the freeze.
The Government keeps all taxes under review and changes are announced at fiscal events.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the total amount of funding from the public purse given by his Department to (a) civil society and (b) campaigning bodies in each of the last five years.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Civil society forms an essential part of our communities up and down the country. It includes large, national charities, social enterprises, volunteers and small grassroots organisations but what joins them all is the idea of creating social value to help build a better society.
Government funding to civil society is ring-fenced for particular projects or programmes. Grant agreement terms and conditions prohibit grant funding being used for paid for lobbying and political campaigning.
HMT has not contributed towards any funding for either civil society or campaigning bodies in any of the last 5 years.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the effect of charging VAT for e-books and audiobooks on (a) literacy rates and (b) the wellbeing of people with disabilities.
Answered by Jesse Norman
The Government keeps all taxes under review, including VAT.
The impact on literacy and people with disabilities of any reduction of VAT on e-publications is likely to depend on commercial decisions about the extent to which any tax saving would lead to price reductions for consumers, and any associated behavioural changes.
Any amendments to the VAT regime as it applies to physical publications and e-publications must be carefully assessed against policy, economic and fiscal considerations. Any representations on this issue will be considered as part of the fiscal events process.
Over the past year the Government has engaged with industry on this issue. It will continue to consider the benefits and risks associated with changing the VAT rate for e-publications; for digital businesses, high street retailers, consumers and taxpayers.
HMRC are carefully considering the Upper Tribunal’s ruling.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential effect of reducing VAT on digital reading formats on the annual cost of low literacy rates; and if he will make a statement.
Answered by Jesse Norman
The Government keeps all taxes under review, including VAT.
The impact on literacy and people with disabilities of any reduction of VAT on e-publications is likely to depend on commercial decisions about the extent to which any tax saving would lead to price reductions for consumers, and any associated behavioural changes.
Any amendments to the VAT regime as it applies to physical publications and e-publications must be carefully assessed against policy, economic and fiscal considerations. Any representations on this issue will be considered as part of the fiscal events process.
Over the past year the Government has engaged with industry on this issue. It will continue to consider the benefits and risks associated with changing the VAT rate for e-publications; for digital businesses, high street retailers, consumers and taxpayers.
HMRC are carefully considering the Upper Tribunal’s ruling.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the Upper Tribunal’s ruling in News Corp UK & Ireland Limited v Commissioners for HMRC [2019] on VAT on digital publications; and if he will make a statement.
Answered by Jesse Norman
The Government keeps all taxes under review, including VAT.
The impact on literacy and people with disabilities of any reduction of VAT on e-publications is likely to depend on commercial decisions about the extent to which any tax saving would lead to price reductions for consumers, and any associated behavioural changes.
Any amendments to the VAT regime as it applies to physical publications and e-publications must be carefully assessed against policy, economic and fiscal considerations. Any representations on this issue will be considered as part of the fiscal events process.
Over the past year the Government has engaged with industry on this issue. It will continue to consider the benefits and risks associated with changing the VAT rate for e-publications; for digital businesses, high street retailers, consumers and taxpayers.
HMRC are carefully considering the Upper Tribunal’s ruling.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent progress has been made on the review of the 2019 Loan Charge.
Answered by Jesse Norman
The Government remains committed to tackling tax avoidance schemes, but it has listened to concerns about the impact of the Loan Charge on individuals. An independent review is under way to consider the appropriateness of the Loan Charge as a policy response, and its impact on individuals.
The reviewer, Sir Amyas Morse, has been asked to provide recommendations by mid-November so that any individuals affected can have certainty about their next steps in advance of the 31 January 2020 Self - Assessment deadline.
While the Review is under way, it is right that the Loan Charge remains in force, in line with current legislation.
HMRC has made clear it will consider all personal circumstances to agree a manageable and sustainable payment plan wherever possible and there is no maximum limit on how long a customer can be given to pay the charge.
Further information about the Review and guidance for affected taxpayers is available at www.gov.uk/government/publications/disguised-remuneration-independent-loan-charge-review.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to suspend the 2019 Loan Charge for the duration of the review of that charge.
Answered by Jesse Norman
The Government remains committed to tackling tax avoidance schemes, but it has listened to concerns about the impact of the Loan Charge on individuals. An independent review is under way to consider the appropriateness of the Loan Charge as a policy response, and its impact on individuals.
The reviewer, Sir Amyas Morse, has been asked to provide recommendations by mid-November so that any individuals affected can have certainty about their next steps in advance of the 31 January 2020 Self - Assessment deadline.
While the Review is under way, it is right that the Loan Charge remains in force, in line with current legislation.
HMRC has made clear it will consider all personal circumstances to agree a manageable and sustainable payment plan wherever possible and there is no maximum limit on how long a customer can be given to pay the charge.
Further information about the Review and guidance for affected taxpayers is available at www.gov.uk/government/publications/disguised-remuneration-independent-loan-charge-review.