Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure taxpayers are adequately informed of the implications of Disclosure of tax avoidance schemes (DOTAS) registration; and if he will make a statement.
Answered by Jesse Norman
Under the Disclosure of Tax Avoidance Scheme (DOTAS) regime introduced in 2004, promoters of a tax scheme are required to notify HM Revenue and Customs (HMRC) where a scheme contains various hallmarks of tax avoidance. Once notified, HMRC send the promoter a Scheme Reference Number (SRN) to give to any user of the scheme. Users must then include the reference number on their tax return. This helps identify users to HMRC for possible investigation.
Since 2009 promoters have been required to inform their clients that disclosure under DOTAS does not represent approval of the scheme by HMRC. Employers involved in disguised remuneration schemes and promoters are legally obliged to inform their employees and clients via forms AAG7 or AAG6. Both forms AAG6 and AAG7 make it absolutely clear that the recipient is involved in a disclosed tax avoidance scheme, that the scheme is not HMRC approved, and that DOTAS registration means the recipient is likely to be investigated for tax avoidance by HMRC.
Failure to inform clients carries a penalty of £5,000 per failure for promoters, and up to the same amount per employee, for employers.
Further information about forms AAG6 and AAG7 is available at the links below: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/491693/AAG6_10_15.pdf; https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/491713/AAG7_10_15.pdf
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to delay the Loan Charge payment deadline of 31 January 2020 until after he has made an assessment of Sir Amyas Morse's review of the Loan Charge; and if he will make a statement.
Answered by Jesse Norman
The Government published Sir Amyas Morse’s independent review of the Loan Charge on 20 December, alongside the Government’s response to his recommendations. The Government welcomes Sir Amyas’ recognition that disguised remuneration schemes are a form of tax avoidance and that action was needed to tackle their use. However, the Government recognises concerns raised by the Review about the design of the Loan Charge and the impact on those liable to pay it and is therefore accepting all but one of the Review’s recommendations. The Government will ensure taxpayers have sufficient time to consider the impact of these changes on their tax position and individuals can now defer submitting their tax return and paying their Loan Charge liability until 30 September 2020, without incurring any penalties or interest.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish Sir Amyas Morse's review of the Loan Charge on 8 January 2020; and if he will make an oral statement on that day.
Answered by Jesse Norman
The Government published Sir Amyas Morse’s independent review of the Loan Charge on 20 December, alongside the Government’s response to his recommendations. The Government welcomes Sir Amyas’ recognition that disguised remuneration schemes are a form of tax avoidance and that action was needed to tackle their use. However, the Government recognises concerns raised by the Review about the design of the Loan Charge and the impact on those liable to pay it and is therefore accepting all but one of the Review’s recommendations. The Government will ensure taxpayers have sufficient time to consider the impact of these changes on their tax position and individuals can now defer submitting their tax return and paying their Loan Charge liability until 30 September 2020, without incurring any penalties or interest.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to establish a new global platform agreement for financial services.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK has extensive global financial services ties with both leading advanced markets and emerging markets. When we leave the EU, we will have new tools at our disposal, which we will take advantage of to enhance our key financial services relationships. These include the chance to forge deep bilateral regulatory agreements based on equivalence and mutual recognition, and the opportunity to negotiate on financial services in Free Trade Agreements. We will also continue to use existing tools, such as engagement in the international standard setting bodies.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish immediately and in full detail the cross-Whitehall Brexit analysis and the underlying models and assumptions supporting that analysis.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has confirmed that once we have agreed a deal with the EU, the Government will provide Parliament with the appropriate analysis of that deal ahead of the vote on the final deal.
With negotiations ongoing, it would not be practical or sensible to set out the details of exactly how the Government will analyse the final deal.
The Government will therefore not provide an ongoing commentary on internal analytical work.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will take steps to accelerate the processing of tax credit change of circumstances notifications.
Answered by Jane Ellison
There are currently three ways to report a change of circumstance: telephone, paper form or digitally. HM Revenue and Customs (HMRC) has processed UK tax credit change of circumstances in an average of less than ten days during the current tax year and is meeting all internal targets for dealing with changes. HMRC keeps performance levels under constant review, including opportunities for further improvements in this area.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what fiscal steps he is taking to help people keep more of their earnings.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The government has committed to increasing the personal allowance to £12,500 and the higher rate threshold to £50,000 by the end of the parliament, enabling people to keep more of the money they earn by paying less income tax. 8 out of 10 working households will be better off as a result of changes announced at this Budget to the personal allowance, National Living Wage and welfare.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the transparency of mortgage pricing; and if he will make a statement.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
The Government is committed to ensuring fair and effective competition across all financial services markets. It has established the independent Financial Conduct Authority (FCA) and given them the responsibility, enshrined in law, to promote effective competition in the interest of consumers. The FCA has the power to create, supervise and enforce any rules it thinks are needed to promote consumer protection, transparency and competition, including with respect to the transparency of mortgage pricing.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of sustained low interest rates on incentives to save; and if he will make a statement.
Answered by Danny Alexander
Low interest rates have benefited everyone, including through reducing mortgage rates, but the Government recognises that this has made it harder for people's savings to grow and to secure an adequate income for retirement. The Government believes it is right, therefore, to support hard working people that have taken the long term decisions to save and plan for their future.
The Budget package announced last month aims to help all savers at all stages of life. It reduces tax for the lowest income savers; reforms the ISA regime to give all savers greater flexibility as to where and how they save their money; and creates new products to help retired savers see a better return.