Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether employees that are being paid through the Coronavirus Job Retention Scheme will jeopardise their access to that scheme in the event that they undertake short-term employment for work places that (a) are understaffed as a result of workers self-isolating, (b) classified as essential by the Government, (c) are experiencing an increased demand as a result of the covid-19 outbreak and (d) where work can be done remotely.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government seeks, as far as possible, to protect people’s jobs and incomes. This is an unprecedented jobs retention scheme and the Government has been working hard to set out further details on the scheme. The Coronavirus Job Retention Scheme is open to any individual who was on an employer’s PAYE payroll on 19 March 2020. Full details can be found in the guidance available at www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme and www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme, which provides answers to these questions.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish details of the process by which businesses can access grants to mitigate the effect of the covid-19 outbreak.
Answered by John Glen
The Business Secretary will write to all Local Authorities by the end of the week with information on the small business grant scheme, and to encourage them to prepare to deliver this quickly. Detailed guidance for Local Authorities will follow by 1st April, and Local Authorities will then write to all eligible businesses with information on how to claim this grant.
We will give small businesses in the retail, hospitality or leisure sectors a higher grant of £25,000 per business if they have a property that has a rateable value between £15,000 and £51,000. Properties in those sectors with a rateable value of £15,000 or less will receive a £10,000 grant even if they are not eligible for small business rates relief. It will be administered in the same way as the small business grant scheme.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to provide financial support to businesses and households whose incomes will be adversely affected by restrictions in place as a result of covid-19.
Answered by Jesse Norman - Shadow Leader of the House of Commons
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: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to instruct (a) banks and (b) landlords to provide (i) mortgage and (ii) rent holidays for (A) households and (B) businesses experiencing financial hardship during the covid-19 outbreak.
Answered by John Glen
Banks and building societies are ready and able to support consumers impacted by COVID-19. On 17 March, the Chancellor announced on behalf of the sector that banks and building societies will offer a 3-month ‘mortgage holiday’ for borrowers that are financially struggling. This will enable affected borrowers to more easily defer their mortgage payments for up to 3 months. Customers who are concerned about the current financial situation should get in touch with their lender at the earliest possible opportunity. The benefits system is ready to assist renters with their housing costs if they find their incomes disrupted by coronavirus.
Following urgent discussions with the banking industry, the mortgage payment holiday of up to 3 months announced on 17 March will be extended to landlords whose tenants are experiencing difficulty due to coronavirus. Lenders have also agreed to a three-month moratorium on residential and buy to let possession action to start immediately to provide customers with reassurance that they will not have their homes repossessed at this difficult time.
The government has announced that to further protect renters, emergency legislation will be taken forward as an urgent priority so that landlords will not be able to start proceedings to evict tenants for at least a three-month period. At the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account the tenant’s individual circumstances.
The Chancellor also announced tax cuts of nearly £20bn for British businesses. Budget announced that eligible properties in the retail, hospitality and leisure sectors, with a rateable value of less than £51,000, would pay no business rates this year. The Chancellor’s announcement of 17 March goes further and provides those businesses an additional cash grant of up to £25,000 per business. It also extends the business rates holiday to all eligible properties in those sectors, irrespective of rateable value, so that all businesses in retail, hospitality or leisure will pay no business rates for 12 months.
Budget announced government will provide £3,000 grants to 700,000 SMEs. This grant is now increased to £10,000.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans the Government has to mandate the closure of businesses to help enable those businesses to access insurance for losses during the covid-19 outbreak.
Answered by John Glen
The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation.
In addition, the Chancellor has made clear that, for those businesses which have an appropriate policy covering pandemics, the Government’s medical advice of 16 March is sufficient to allow businesses to make a claim against their insurance, provided the other terms and conditions in their policy are met. We recognise that most businesses have not purchased insurance that covers pandemic-related losses. Any affected businesses should note the government’s full package of support.
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: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his announcement of 28 September 2019 of £16.6 billion to guarantee funding for organisations in receipt of EU programme funding in the event of the UK leaving the EU without a deal, whether charities and non-Governmental organisations that receive funding from the Asylum, Migration and Integration Fund will be eligible for that funding.
Answered by Rishi Sunak
Organisations that have successfully bid directly to the European Commission for Asylum, Migration and Integration Fund (AMIF) funding on a competitive basis while the UK is still in the EU are covered by this guarantee. The £16.6 billion of funding announced includes provisions for eligible AMIF recipients.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with his EU counterparts during negotiations on the UK leaving the EU on the maintenance of European pensions in the event that the UK leaves the EU without a deal.
Answered by Elizabeth Truss
The Government is committed to getting a good deal for the UK, and we have agreed a fair financial settlement with the EU. We have always been clear that the UK has obligations to the EU, and the EU obligations to the UK, that will survive the UK’s withdrawal, and that these would need to be resolved.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the effect of the 2019 Loan Charge on the number of bankrupts.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Disguised Remuneration schemes are contrived arrangements that pay loans in place of ordinary remuneration with the sole purpose of avoiding income tax and National Insurance contributions. When taking into account the loan they received, loan scheme users have on average twice as much income as the average UK taxpayer.
HMRC data indicates that fewer than 3% of those affected work in medical services (doctors and nurses) and teaching. Further information can be found in HMRC’s issue briefing: https://www.gov.uk/government/publications/hmrc-issue-briefing-disguised-remuneration-charge-on-loans/hmrc-issue-briefing-disguised-remuneration-charge-on-loans.
HMRC is working hard to help individuals to get out of tax avoidance for good. HMRC does not want to make anybody bankrupt and very few cases ever reach that stage.
HMRC has simplified the process for those who choose to settle their use of avoidance schemes before the charge arises, so that those earning less than £50,000 a year and no longer engaging in tax avoidance can agree a payment plan of up to five years without the need for detailed supporting information. There is no maximum period within which an overall settlement can be agreed, and HMRC will deal with individual cases appropriately and sympathetically.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements on disguised remuneration schemes with employers and individuals of over 650 million pounds. More than 90% of this amount was collected from employers, with less than 10% from individuals.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many (a) doctors and (b) nurses will be subject to the 2019 Loan Charge.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Disguised Remuneration schemes are contrived arrangements that pay loans in place of ordinary remuneration with the sole purpose of avoiding income tax and National Insurance contributions. When taking into account the loan they received, loan scheme users have on average twice as much income as the average UK taxpayer.
HMRC data indicates that fewer than 3% of those affected work in medical services (doctors and nurses) and teaching. Further information can be found in HMRC’s issue briefing: https://www.gov.uk/government/publications/hmrc-issue-briefing-disguised-remuneration-charge-on-loans/hmrc-issue-briefing-disguised-remuneration-charge-on-loans.
HMRC is working hard to help individuals to get out of tax avoidance for good. HMRC does not want to make anybody bankrupt and very few cases ever reach that stage.
HMRC has simplified the process for those who choose to settle their use of avoidance schemes before the charge arises, so that those earning less than £50,000 a year and no longer engaging in tax avoidance can agree a payment plan of up to five years without the need for detailed supporting information. There is no maximum period within which an overall settlement can be agreed, and HMRC will deal with individual cases appropriately and sympathetically.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements on disguised remuneration schemes with employers and individuals of over 650 million pounds. More than 90% of this amount was collected from employers, with less than 10% from individuals.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how much money his Department has spent on bottled water in each year since 2010.
Answered by Robert Jenrick
The department’s accounting system does not separately identify bottled water spend. This spend falls under the refreshments category and such spending is spread across several account codes.