Written Questions are submitted by MPs or Lords to receive information from a Department.
|11 Jan 2019, 2:15 p.m.||NHS: Tax Avoidance||Neil Coyle|
To ask the Chancellor of the Exchequer, what estimate he has made of the number of (a) current and (b) former (i) employees, (ii) contractors and (iii) agency workers that will be affected by changes to loan charge schemes; and what support the NHS is providing to those affected.
Answer (Mel Stride)
The 2019 loan charge is targeted at artificial tax avoidance schemes where earnings were paid via a third party in the form of ‘loans’ which in reality were never repaid – ‘disguised remuneration’ (DR) schemes.
The Government recognises that the charge on DR loans will have a significant impact on some people who have used DR schemes. The impact of the DR loan charge on these individuals was considered at Budget 2016, when the measure was first announced. HMRC consulted on the measure in August 2016. The latest tax information and impact note (TIIN) can be found at: https://www.gov.uk/government/publications/disguised-remuneration-further-update/disguised-remuneration-further-update.
The Government estimates that up to 50,000 individuals will be affected by the 2019 loan charge. The loan charge applies to all users of DR tax avoidance schemes. It does not single out a specific group or industry, such as contractors or doctors. 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 the Government’s issue briefing at: https://www.gov.uk/government/publications/hmrc-issue-briefing-disguised-remuneration-charge-on-loans/hmrc-issue-briefing-disguised-remuneration-charge-on-loans
The Government does not have any data on support the NHS provides to those affected by the DR loan charge.
HM Revenue and Customs (HMRC) is working hard to help individuals get out of tax avoidance for good and is encouraging anyone who is concerned about their ability to pay to contact them as soon as possible to discuss their options. In November 2017, HMRC set up a dedicated helpline for those wanting to settle their avoidance scheme use, and discuss payment options. HMRC will work with all individuals to reach a manageable and sustainable payment plan wherever possible.