Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to introduce changes to the Check Employment Status Tool ahead of reforms to IR35 within the private sector.
Answered by Jesse Norman
HMRC developed the Check Employment Status for Tax (CEST) online tool to help organisations and individuals determine employment status for tax and decide whether the off-payroll working rules apply.
The CEST service was developed in conjunction with tax specialists, contractors and other stakeholders. It was rigorously tested against established case law and settled cases to ensure it provides accurate results in line with current binding judgments. In the vast majority of uses, CEST will determine whether the engagement is employed or self-employed for tax purposes. HMRC will stand by CEST’s results provided accurate and correct information is used, in accordance with HMRC’s guidance.
In November 2019, HMRC launched an enhanced version of CEST, having worked with over 300 stakeholders to identify improvements. The tool’s enhancements included making questions and the results clearer, increasing the number of questions to provide a more thorough assessment, and building in features to reduce user errors.
Since launch, HMRC have monitored customer feedback and have updated the tool’s language where this improves the customer experience. This includes providing additional help text and links to off-payroll guidance in HMRC’s Employment Status Manual. HMRC are continuing to monitor feedback with a view to making future usability updates.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Prime Minister of 4 September 2019, official report, column 175, what the timescale is for the review into the Loan Charge; and if he will make a statement.
Answered by Jesse Norman
The Government remains committed to tackling tax avoidance schemes based on Disguised Remuneration, but it has listened to concerns about the impact of the Loan Charge on individuals. I wrote to all MPs on 11th September with details of the independent review which the Chancellor of the Exchequer has commissioned to consider the impact of the Loan Charge.
The Review will report back in mid-November, and the Government will set out its next steps at that point, in advance of the Loan Charge falling due on 31 January 2020.
More information on the independent review is online at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/830989/loan_charge_review_web.pdf
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Prime Minister of 4 September 2019, what steps he plans to take to ensure that a review into the 2019 Loan Charge is independent of (a) his Department and (b) HMRC.
Answered by Jesse Norman
The Government will set out details of the review shortly.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Prime Minister of 4 September 2019, whether he plans to suspend the collection of settlements in relation to the 2019 Loan Charge while a review is being undertaken.
Answered by Jesse Norman
The Prime Minister on 4 September 2019 announced that the Government will undertake a thorough review of the loan charge. The Government will set out further details shortly and HMRC will confirm the next steps for those affected soon afterwards.
No settlements have been suspended and the loan charge remains in force. HMRC have paused in finalising new settlements, while details of the review are being confirmed. Those who have settled their disguised remuneration scheme use and have agreed a payment plan with HMRC should continue to pay their settlements in line with their contract agreements.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Prime Minister of 4 September 2019, who will undertake the review of the Loan Charge, and what the timeframe is for that review.
Answered by Jesse Norman
The Government will set out details of the review shortly.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what records HMRC holds on suicides by individuals who are subject to the 2019 loan charge.
Answered by Mel Stride - Secretary of State for Work and Pensions
When HMRC is notified that an individual has taken their own life, and had contact with the customer at the time, or shortly beforehand, its standard process is to refer the matter to the Independent Office for Police Conduct within 24 hours of the notification.
On Monday 18 March, HMRC was informed that a customer had, very sadly, taken their own life. The department had previously been told that the individual had used disguised remuneration schemes. Out of respect for the family, and given HMRC’s statutory duty of taxpayer confidentiality, it is not in a position to comment further.
Suicide is a complex issue and there is rarely a single cause. It is important to emphasise that it will be for a coroner to determine any cause of death, not HMRC. The department will, of course, co-operate fully with any inquest.
As Sir Jonathan Thompson KCB, HMRC Chief Executive and Permanent Secretary, said in his 13 March 2019 letter to the Loan Charge All Party Parliamentary Group, at that time HMRC was aware of reports but did not possess information that enabled it to identify a named individual.
An impact assessment was published when the measure was announced at Budget 2016. The Government will also publish a report that will set out the rationale for, and impact of, the policy before 30 March 2019.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC has made an (a) assessment of the risk of suicide and (b) estimate of the number of suicides among people subject to the 2019 Loan Charge; and if he will make a statement.
Answered by Mel Stride - Secretary of State for Work and Pensions
When HMRC is notified that an individual has taken their own life, and had contact with the customer at the time, or shortly beforehand, its standard process is to refer the matter to the Independent Office for Police Conduct within 24 hours of the notification.
On Monday 18 March, HMRC was informed that a customer had, very sadly, taken their own life. The department had previously been told that the individual had used disguised remuneration schemes. Out of respect for the family, and given HMRC’s statutory duty of taxpayer confidentiality, it is not in a position to comment further.
Suicide is a complex issue and there is rarely a single cause. It is important to emphasise that it will be for a coroner to determine any cause of death, not HMRC. The department will, of course, co-operate fully with any inquest.
As Sir Jonathan Thompson KCB, HMRC Chief Executive and Permanent Secretary, said in his 13 March 2019 letter to the Loan Charge All Party Parliamentary Group, at that time HMRC was aware of reports but did not possess information that enabled it to identify a named individual.
An impact assessment was published when the measure was announced at Budget 2016. The Government will also publish a report that will set out the rationale for, and impact of, the policy before 30 March 2019.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the progress of UK banks in ring-fencing retail services from investment banking.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Under the 2012 Financial Services (Banking Reform) Act large UK banks with retail deposits totalling more than £25 billion are required to ring-fence the deposits of individuals and small businesses from other activities within their groups, such as investment and international banking.
All banks within scope of the ring-fencing regime have successfully completed the necessary restructuring of their operations in advance of the regime coming into force in January 2019. This includes moving customers from one part of the bank to another, changing over a million sort codes and the joining of both UK and international payment systems to facilitate operational separation. The banks have also completed large technology migrations as part of the changes to their internal processes
By insulating these core banking services in a separate legal entity, ring-fencing will support continuity of provision of vital services to the economy if there are shocks originating elsewhere in the group and the global financial system. It will also make banks that provide these essential services simpler and more resolvable and therefore prevent the costs of failing banks falling on taxpayers.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 April 2018 to Question 135229 on public sector: pensions, whether there is a deadline to which Departments responsible for public service schemes must take forward any necessary regulatory changes.
Answered by Elizabeth Truss
HM Treasury will work with Departments responsible for public service schemes to ensure that scheme rules are changed to comply with the Walker vs Innospec judgment as soon as practicable.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 April 2018 to Question 135229 on public sector: pensions, how many Departments responsible for public service schemes have taken forward any necessary regulatory changes.
Answered by Elizabeth Truss
All Departments responsible for public service schemes are in the process of identifying members who will receive a change in entitlement, undertaking public consultations where necessary and then bringing forward the necessary regulatory changes.