Commons Sense

Hansard-based summaries and metrics

<-- Back to proposed bills

Parliamentary Question Correction

24 March 2022

Proposing MP
Nigel Huddleston Con
Droitwich and Evesham
Type
Written Ministerial Statement
Department
Department for Digital, Culture, Media and Sport
View on Parliament.uk -->

At a Glance

Issue Summary

The statement addresses an error in the tax treatment advice given to freelancers who received emergency grants from Arts Council England during the pandemic.

Action Requested

HMRC and DCMS officials agreed that individuals would not be penalised for errors related to the grant payments, allowing recipients to correct their tax returns without penalties if they filed within a month of the deadline. HMRC will also not charge penalties if recipients remain unaware of the error or rely on incorrect information.

Key Facts

  • Arts Council England provided £17.1 million in grants through its Emergency Response Fund for Individuals, awarding 7,484 grants with an average grant amount of about £2,285.
  • The grants were initially thought to be non-taxable but were later reclassified as taxable by HMRC.
  • Recipients were advised not to face penalties if they corrected their tax returns within a month after the deadline or if HMRC discovered errors related to reliance on incorrect official information.
▸ Assessment & feedback
Summary accuracy