Business: Coronavirus

(asked on 9th February 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what comparative assessment he has made of the equity of his policies on the recovery of fraudulently claimed covid-19 support funds and the pursuance of the retrospective loan charge.


Answered by
Lucy Frazer Portrait
Lucy Frazer
Secretary of State for Culture, Media and Sport
This question was answered on 22nd February 2022

The Covid-19 support funds and the Loan Charge are two distinct polices.

In relation to the Covid-19 support funds, throughout the pandemic, the Government’s number one priority has been to protect jobs and livelihoods while also supporting businesses and public services across the UK.

The overwhelming majority of people that claimed Covid-19 support did so legitimately. However, HMRC are aware that mistakes can happen, which is why they are supporting people who made a mistake to correct it. Those who keep money claimed from any of the Covid-19 support schemes despite knowing they were not entitled to it face having to repay up to double the amount they received, plus interest, and potentially criminal prosecution in the most serious of cases.

The Loan Charge was announced at Budget 2016 and was a new tax charge on disguised remuneration loan balances outstanding on 5 April 2019. The Government recognises the Loan Charge can have a significant impact. Anyone who is worried about being able to pay their Loan Charge liability should contact HMRC. They may be able to agree an instalment arrangement based on their financial circumstances.

No comparative assessment of the recovery of Covid-19 support and liabilities related to the Loan Charge has been made, as they are not directly comparable.

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