Commons Sense

House of Commons · Ministers' Questions

Loan Charge: HMRC Settlement

Tuesday 1 December 2020 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • About 11,000 employers and individuals settled their use of disguised remuneration schemes between Budget 2016 and March 2020
  • HMRC extended the settlement date by eight months to allow individuals to settle their schemes
  • The government is taking robust action against promoters of tax avoidance schemes

Topics (select to filter)

Questions & Answers

Q1 Gareth Bacon Con Orpington
Taxation
Context

Concern about the number of individuals and employers who have settled their use of disguised remuneration tax avoidance schemes with HMRC post Budget 2016.

Question

How many and what proportion of people who have had settlement discussions with HMRC on the loan charge have reached a settlement. About 11,000 employers and individuals settled their use of disguised remuneration schemes between Budget 2016 and March 2020.

Answer from Jesse Norman

About 11,000 employers and individuals settled their use of disguised remuneration schemes between Budget 2016 and March 2020. HMRC is preparing a report to Parliament on the implementation of the recommendations of the independent loan charge review, due imminently.

Partly answered

Not addressed: Did not provide figures up to September 30, 2020 as requested.

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Q2 Gareth Bacon Con Orpington
Taxation
Context

Concern about process failings, errors and delays by HMRC that may have denied people the chance to settle their claims by September 30, 2020 deadline.

Question

In circumstances where process failings, errors and delays on the part of HMRC effectively denied people the possibility of settling their claims by 30 September, will he commit to offering an extended settlement period to allow individuals the chance to settle their debts?

Answer from Jesse Norman

The settlement date has already been extended by eight months. This extension was important and gave individuals the chance to settle their schemes. The government is also taking robust action against promoters of tax avoidance schemes.

Partly answered

Not addressed: Did not commit to an additional extension beyond the existing one, despite process failings.

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