Key Facts

• The landfill tax contributes to a 90% decrease in local authority waste to landfill in England since 2000.
• Landfill tax fraud results in an estimated £125 million tax gap as of 2021.
• HMRC recovered £280 million of compliance yield through increased data sharing and intelligence-led interventions in 2022-23.
• Clause 35 and Clause 36 of the Finance Bill are being discussed.
• The discussion relates to the addition of new information requirements in returns under the Tax Management Act 1970.
• Clause 35 requires employers to provide more detailed hours of pay information.
• Self-employed taxpayers must report dividend income separately and hold business percentage shares.
• Clause 36 introduces a new penalties system from April 2024 for voluntary Making Tax Digital participants.
• The penalty system is fairer, penalising persistent non-compliance but lenient on occasional mistakes.
• Clause 35 modifies tax return data collection to enhance HMRC's information on employee hours worked, dividend income, and self-employment start/end dates.
• Estimated one-off transitional costs are £44 million and ongoing annual administrative burden is £9.6 million for businesses.
• Chartered Institute of Taxation questions the costings accuracy regarding providing data on employee hours worked.
• The Institute of Chartered Accountants in England and Wales expresses concern about the relevance of collecting employee hours worked data.
• Clause 36 modifies regulation-making powers to bring into force penalties from schedules 24 to 27 of the Finance Act 2021.
• New penalty system will impose points-based sanctions for late submissions and payments, affecting MTD volunteers before April 2026.
• The new clause requires the Chancellor to assess the impact within one year.
• It covers the UK's duty under section 1 of the Climate Change Act 2008 for the 2050 target.
• It also addresses obligations and commitments under the Paris Agreement of 2015.
• A quarter of a million children could be lifted out of poverty by scrapping the two-child limit.
• An additional 850,000 children could benefit from removing the policy completely.
• The Finance Bill does not include help for struggling families dealing with higher energy bills and other rising household costs.
• Numerous Departments have mechanisms to evaluate policy impacts.
• The Office for Budget Responsibility produces forecasts twice a year independently.
• The ONS provides monthly updates on the cost of living.
• Surveys like the Family Resources Survey, Living Costs and Food Survey, and Annual Survey of Hours and Earnings provide long-term data.
• HM Treasury publishes an 'Impact on households' report at major fiscal events.
• The new clause would compel the Chancellor to assess impacts on poverty, inequality, and health within six months of Royal Assent.
• Evidence shows a significant health divide since 1980, with life expectancy flatlining or declining for women and in deprived areas.
• Improving health levels in northern England could increase productivity by £13.2 billion annually.
• The statement is a thank you note to Ministers, shadow Ministers, Committee Clerks, members of Parliament, and stakeholders.
• Line-by-line scrutiny of the Finance Bill is acknowledged as serious work.