Asked by: Roger Godsiff (Labour - Birmingham, Hall Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effectiveness of incentives to increase the uptake of electric vehicles.
Answered by Robert Jenrick
The government currently offers a range of incentives to support the shift to ultra low emission vehicles (ULEVs). Today there are more than 160,000 ULEVs in the UK and, in 2017, the UK was the second largest market for ULEVs in the EU.
The vehicle tax system incentivises the uptake of cars with low CO2 emissions with favourable rates of Vehicle Excise Duty and company car tax. We are also investing nearly £1.5 billion to support the uptake of ULEVs. This investment includes grants for cars, vans, lorries, buses, taxis and motorcycles, and schemes to support charge point infrastructure at homes and workplaces and on residential streets.
Asked by: Roger Godsiff (Labour - Birmingham, Hall Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the UK plans to (a) support and (b) seek a G20 commitment to provide transparency and disclosure of all loans made by governments and multilateral institutions.
Answered by John Glen
The UK strongly supports the transparent and sustainable lending practices to sovereigns, particularly low-income countries (LICs).
In 2017, the G20 agreed Operational Guidelines for Sustainable Financing to promote transparent and sustainable lending to LICs from G20 members. The UK is working with G20 partners to ensure the ongoing implementation of the Guidelines.
In April 2018, the International Monetary Fund (IMF) and World Bank Group (WBG) announced a joint multi-pronged approach to promote debt transparency and sustainability in LICs. The UK will continue to work with other G20 members to monitor the progress of this work programme which is led by the multilateral institutions.
Asked by: Roger Godsiff (Labour - Birmingham, Hall Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if the Government will provide five years' visibility on company car tax rates after 2020-21 in the forthcoming Autumn Budget.
Answered by Robert Jenrick
To provide certainty of the future tax liability for company car employers and employees, the government aims to announce the company car tax rates three years in advance of implementation.
Asked by: Roger Godsiff (Labour - Birmingham, Hall Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the merits of requiring online retailers to pay the same level of tax as high-street retailers.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Major business taxes apply in the same way to online and high-street retailers.
The government recognises business rates can be a high fixed cost for some retailers with a large high-street presence, and has acted to introduce reforms and reductions to rates worth £10 billion by 2023.
The government recognises that the digital economy poses a challenge to the tax system and has been considering how best to address this through international and domestic reforms.
Asked by: Roger Godsiff (Labour - Birmingham, Hall Green)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what representations (a) his Department and (b) groups representing contractors have made on the establishment of a suicide prevention hotline to support people facing bankruptcy as a result of the 2019 Loan Charge.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The charge on disguised remuneration (DR) loans was introduced to tackle the use of DR tax avoidance schemes. These schemes are contrived arrangements that pay loans in place of ordinary remuneration to avoid Income Tax and National Insurance contributions. The loans are provided on terms that mean they are unlikely to be repaid, so they are no different to normal income and are, and always have been, taxable.
The Government recognises that some people will face significant bills. HMRC wants to help people put things right and has an outstanding track record of helping people, but it can only help those who come forward.
HMRC takes its duty of care very seriously for vulnerable people and people who are worried or anxious about their tax affairs. HMRC have guidance and training in place for their staff on how to provide support. HMRC has an existing dedicated line, which has been widely publicised, for those interested in getting out of avoidance schemes.
The Government would urge anybody who is concerned about their ability to pay to contact HMRC as soon as possible. HMRC will consider all personal circumstances to agree a manageable and sustainable payment plan wherever possible.
Asked by: Roger Godsiff (Labour - Birmingham, Hall Green)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what representations (a) his Department and (b) groups representing contractors have made on the establishment of a suicide prevention hotline to support people facing bankruptcy as a result of the 2019 Loan Charge.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The charge on disguised remuneration (DR) loans was introduced to tackle the use of DR tax avoidance schemes. These schemes are contrived arrangements that pay loans in place of ordinary remuneration to avoid Income Tax and National Insurance contributions. The loans are provided on terms that mean they are unlikely to be repaid, so they are no different to normal income and are, and always have been, taxable.
The Government recognises that some people will face significant bills. HMRC wants to help people put things right and has an outstanding track record of helping people, but it can only help those who come forward.
HMRC takes its duty of care very seriously for vulnerable people and people who are worried or anxious about their tax affairs. HMRC have guidance and training in place for their staff on how to provide support. HMRC has an existing dedicated line, which has been widely publicised, for those interested in getting out of avoidance schemes.
The Government would urge anybody who is concerned about their ability to pay to contact HMRC as soon as possible. HMRC will consider all personal circumstances to agree a manageable and sustainable payment plan wherever possible.
Asked by: Roger Godsiff (Labour - Birmingham, Hall Green)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the potential benefits to the (a) public purse and (b) environment of the introduction of an incineration tax.
Answered by Robert Jenrick
The government recently concluded a call for evidence on whether the tax system or charges could help reduce single-use plastic waste.
As part of this, a number of respondents suggested the potential for an incineration tax in order to increase levels of recycling. The government will consider the arguments for and against such a tax, alongside all the other options, in order to deliver the right environmental outcomes.
The government will outline the next steps in this process in due course.
Asked by: Roger Godsiff (Labour - Birmingham, Hall Green)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 19 June to Question 153733, if he will allocate additional funding to the Parliamentary and Health Services Ombudsman to respond to the increase in the caseload from WASPI complainants.
Answered by Elizabeth Truss
The Parliamentary and Health Service Ombudsman (PHSO) is independent of Government and is accountable directly to Parliament through the Public Administration and Constitutional Affairs Committee. The Ombudsman has not requested additional funding to deal with WASPI complaints from HM Treasury.
Asked by: Roger Godsiff (Labour - Birmingham, Hall Green)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, for what reason the Government retrospectively introduced the 2019 Loan Charge from 1999 rather than from the date of Royal Assent to the Finance Act 2017; what assessment the Government has made of the effect of that decision to backdate on contracted staff (a) in general and (b) in relation to the potential for consequential bankruptcies; how many people will be required to pay backdated taxes as a result of the introduction of that charge; and what estimate the Government has made of what proportion of those people will lack the financial means to pay that charge.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The 2019 loan charge is targeted at artificial schemes where earnings were paid in the form of non-repayable loans made by an offshore third party (“disguised remuneration” schemes). It is unfair to ordinary taxpayers to let anybody benefit from contrived tax avoidance of this sort, and that is why this government has taken action to ensure that everybody pays the taxes they owe.
The loan charge is not retrospective. It is a new charge arising on disguised remuneration loan balances that remain outstanding on 5 April 2019. Its announcement at Budget 2016 provided scheme users with a three year period to repay their loans, or to agree a settlement with HMRC before the charge takes effect. The government estimates that around 50,000 individuals are affected by this legislation.
HMRC are able to help taxpayers who are not able to pay their taxes and will work with those who are in genuine difficulty to help them to get back on track.
Asked by: Roger Godsiff (Labour - Birmingham, Hall Green)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to the Financial Conduct Authority's decision on BrightHouse, announced on 24 October 2017, whether his Department plans to bring forward legislative proposals to (a) further regulate the rent-to-own market and (b) introduce a price cap on rent-to-own goods.
Answered by John Glen
The government transferred the regulation of consumer credit, including rent-to-own, to the Financial Conduct Authority (FCA) in 2014. The Government has given the FCA strong powers to protect consumers, as demonstrated by the FCA announcement in October 2017 that BrightHouse, a rent-to-own firm, would pay over £14.8 million in redress to 249,000 customers in respect of agreements which may not have been affordable, and payments which should have been refunded.
The government has also given the FCA the power to cap all forms of credit, and the FCA can do so if it thinks it is necessary to protect consumers.
The government welcomes the ongoing work of the FCA to review the high-cost credit market, including the rent-to-own sector. The FCA aims to consult on proposed remedies in Spring 2018.