Mr Bain: To ask the Chancellor of the Exchequer what plans he has to retain the 50p rate of income tax on incomes over £150,000 for the duration of the current Parliament. [50130]
Mr Gauke: The Government believe the 50% rate would do lasting damage to the UK economy if it were to become permanent. The Chancellor has asked HMRC to assess the revenue raised by this measure after self-assessment data for the 2010-11 tax year are available.
Income Tax: Overpayments
Michael Fallon: To ask the Chancellor of the Exchequer (1) what was the average length of time taken by HM Revenue and Customs to complete a repayment to an individual who had made an income tax overpayment in each of the last 10 years; [43805]
(2) if he will take steps to reduce the time taken for HM Revenue and Customs to make repayments to individuals who have made income tax overpayments. [43808]
Mr Gauke [holding answer 3 March 2011]:There are many circumstances in which an income tax repayment may arise. Overpayments of income tax are normally processed by HM Revenue and Customs (HMRC) as soon as entitlement has been established. Information across income tax on the average length of time taken to process a repayment is not available.
HMRC seek to strike a balance between good customer service, by ensuring customers receive the repayments to which they are entitled as quickly as possible, and effectively protecting the Exchequer from fraud. Once entitlement has been established, the great majority of repayments are issued without significant delay. Additional security checks may mean that a small minority of repayments could take a little longer to be issued while HMRC ensure that they are not fraudulent and are correct. HMRC is sorry that, particularly at peak times, this may mean that legitimate repayments may be delayed and understand the difficulties this can cause their customers.
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Over the last few years HMRC have made significant changes to procedures to speed up the issue of legitimate repayments and reduce any delays.
Most PAYE overpayments are identified on the reconciliation of a tax year and payable orders are issued shortly after the overpayment has been calculated. For the first time with the new national insurance and PAYE system, HMRC is now able to undertake most reconciliations automatically, rather than having to work these cases manually.
As a result HMRC has completed 98% of PAYE reconciliations for tax years 2008-09 and 2009-10 where they have received all the information. This has enabled repayments for 2008-09 and 2009-10 tax years to be made much more quickly than was possible under the previous PAYE system and NPS will support further processing improvement year on year.
Income Tax: Poole
Mr Syms: To ask the Chancellor of the Exchequer what estimate he has made of the number of people on low incomes in (a) the UK and (b) Poole constituency who will no longer pay income tax following implementation of his decision to increase the personal income tax allowance. [50512]
Mr Gauke: The increase in the personal allowance by £630 for those aged under 65 is estimated to remove the 260,000 lowest income taxpayers out of income tax altogether in 2012-13. In combination with the £1,000 increase in the personal allowance in 2011-12, the increases in the personal allowance announced by this Government will remove an estimated 1.1 million individuals out of income tax altogether by 2012-13.
These estimates are based on the 2007-08 Survey of Personal Incomes data projected to 2011-12 and 2012-13 in line with the Office for Budget Responsibility’s March 2011 forecast assumptions.
Reliable estimates are not available at parliamentary constituency level, due to small survey sample sizes and significant uncertainties in projections for small geographical areas.
Individual Savings Accounts
Mr Bain: To ask the Chancellor of the Exchequer if he will assess the effects on the long-term value of holdings in individual savings accounts of the policy to link personal tax allowances to the consumer price index measure of inflation. [50021]
Mr Hoban: The long-term value of holdings in individual savings accounts (ISAs) is affected by a variety of factors including fluctuations in asset prices, average dividend yields, average interest rates and households’ propensity to save. No detailed analysis of the precise effects of using the CPI inflation measure on ISA holdings in general is available but the effect is thought to be relatively small.
Further information is contained in the published Tax information and Impact Note (A31) of the Overview of Tax Legislation and Rates document to be found at:
http://cdn.hm-treasury.gov.uk/2011budget_taxation_overview.pdf
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Mr Syms: To ask the Chancellor of the Exchequer what steps he is taking to support savers. [50513]
Mr Hoban: The Government are committed to creating conditions for higher savings over the longer term. In particular, the Government aim to encourage more lower and middle income households to start saving and save more, especially for the long term and retirement. Government support should be fair and sustainable, focused on those who traditionally have saved least.
The Government want a saving system based on freedom, fairness and responsibility, as well as ensuring lasting affordability and measurable effectiveness. These principles will guide the Government’s aims of rewarding saving, supporting pensions, and helping vulnerable households.
A number of measures have been announced which will take the first steps in meeting these aims, such as the indexation of annual subscription limits for Individual Savings Accounts (ISAs), meaning that savers will be able to pay an extra £480 into their ISAs in 2011-12. To ensure parents can save tax free for their children, the Government are developing a Junior ISA which will be launched in autumn this year. The Government are also introducing from spring 2011 a national financial advice service and a free financial “healthcheck”, delivered by the Money Advice Service (formerly the Consumer Financial Education Body). This new service will help people take responsibility for their finances and encourage them to think about savings and protection. In addition to this the Government have given individuals more choice over the use of their pension savings to provide a retirement income by removing the effective requirement to purchase an annuity by age 75.
The Government have also confirmed that employers will have a new duty to automatically enrol qualifying employees into a minimum quality pension scheme from 2012. The Government believe this behavioural device can make a real difference; as a result around 4-8 million might start saving or saving more into a workplace pension scheme. The Government are also establishing the National Employment Savings Trust (NEST) to provide a low cost pension scheme for individuals not currently served by the market.
Inheritance Tax: Tax Allowances
Mr Bain: To ask the Chancellor of the Exchequer if he will assess the potential effects on the portion of a deceased's estate which is exempt from inheritance tax of the policy to link personal tax allowances to the consumer price index measure of inflation. [50025]
Mr Gauke: The inheritance tax threshold is frozen until the end of March 2015 and a CPI switch will take effect from April 2015. The impact of the measure on individual estates is uncertain as the exact thresholds will ultimately depend upon the inflation rates nearer the time. The current estimate of the impact is summarised in the following table.
Final costing, National Accounts basis(£m) | |
IHT, CPI from April 2015 | |
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(1 )Negligible. |
Members: Correspondence
Mr Arbuthnot: To ask the Chancellor of the Exchequer when he plans to reply to the letters from the hon. Member for North East Hampshire of 21 July, 11 October and 20 December 2010 on his constituent, Mr Harris, Treasury reference 3/13766/2010. [50024]
Mr Hoban: I have replied to the right hon. Member.
National Insurance Contributions: New Businesses
Chris Leslie: To ask the Chancellor of the Exchequer how many businesses had qualified for the national insurance contribution holiday for new firms on the latest date for which figures are available; and if he will make a statement. [48529]
Mr Gauke [holding answer 23 March 2011]:By 28 March 2011, HMRC had received 2,892 successful applications for the regional NICs holiday from new businesses. A regional breakdown of the figures can be found in a recently released FOI answer:
http://www.hmrc.gov.uk/freedom/nic-holiday.htm
Taxation: Scotland
Dr Whiteford: To ask the Chancellor of the Exchequer what the implications of combining national insurance and income tax will be for the income tax powers contained in the provisions of the Scotland Bill. [50109]
Mr Gauke: In Budget 2011 the Government announced their intention to consult on potential reforms to integrate the operation of income tax and national insurance contributions (NICs).
In doing so, the Government have been clear that income tax and NICs will remain separate. This reflects the important role NICs play in providing entitlement to contributory benefits and the potential impacts on the rest of the income tax system from a full merger.
Any change in this area will involve a wide range of policy and implementation issues, and require extensive consultation to get it right. The Government will start this consultative process later this year by publishing an initial consultation document on the options, stages and timing of reform. Wider issues, such as the interaction with the proposals in the Scotland Bill, will be taken into account in considering the options brought forward for consultation.
Pensions: Tax Allowances
Mr Laws: To ask the Chancellor of the Exchequer what his estimate is of the revenue yield of restricting pensions tax relief to (a) 20, (b) 30 and (c) 35 per cent.; and if he will make a statement. [49433]
Mr Gauke: HMRC estimate the yield of restricting tax relief in 2011-12 to:
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(a) 20% is £7 billion,
(b) 30% is £4 billion,
(c) 35% is £2.5 billion.
This is on an accruals basis and excludes behavioural effects. It takes into account the new restrictions on tax relief on pension contributions to registered pension schemes that will mean the annual allowance reduces to £50,000 from the 2011-12 tax year and the lifetime allowance reduces to £1.5 million from 2012-13.
Post Office: Bank Services
Kate Hoey: To ask the Chancellor of the Exchequer pursuant to the answer of 16 February 2011, Official Report, column 884W, on the Post Office: bank services, from whom research was commissioned on exploring the options for all customers to have the opportunity to benefit from direct debit discounts; and when he plans to publish such research. [50321]
Mr Hoban: The Financial Inclusion Taskforce commissioned research from Social Finance to explore the commercial viability of a new financial product (a ‘jam jar’ account) designed to meet the needs of low-income consumers by supporting positive financial management, smoothing expenditure and enabling access to better value services and products, such as direct debits. The research will be published on the HM Treasury website by 15 April 2011.
Public Expenditure
Mr Bain: To ask the Chancellor of the Exchequer if he will assess the potential effects of recent trends in inflation on the value of spending allocations to Government Departments in each year of the comprehensive spending review period. [49286]
Danny Alexander: In line with usual practice, departmental expenditure limits for the years 2011-12 to 2014-15 were set in cash terms in the 2010 spending review. Settlements were based on the best forecast of inflation at the time, produced by the independent Office for Budget Responsibility (OBR), and forecasts of inflation are always subject to change.
Revenue and Customs: Security
Lilian Greenwood: To ask the Chancellor of the Exchequer how many security incidents were recorded by the Security and Business Continuity Directorate in HM Revenue and Customs in each year since 2007. [51015]
Mr Gauke: We provide information about security incidents reported centrally within HMRC for the Resource Account and the Annual Information Risk Return to Cabinet Office.
Total | |
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Lilian Greenwood: To ask the Chancellor of the Exchequer how many staff were employed in the Security and Business Continuity Directorate in HM Revenue and Customs in each year since 2007. [51016]
Mr Gauke: HMRC’s Security and Business Continuity function has undergone significant organisational change since 2007. The number of staff employed in HMRC’s Security and Business Continuity core function for each financial year since 2007 was:
Number | |
The figure quoted in respect of 2007-08 is on the basis of full-time equivalent staff in post, rounded to the nearest whole number, as at 6 December 2007. The figures for 2008-09 to 2010-11 represent the average number of full-time equivalent staff in post for each year, rounded to the nearest whole number.
Tax Allowances
Mr Bain: To ask the Chancellor of the Exchequer if he will assess the potential effects on capital gains tax allowances of the policy to link personal tax allowances to the consumer price index measure of inflation. [50022]
Mr Gauke: A full assessment of the impact was made as part of the Budget decision making process and is available in the published Tax Information and Impact Note (A35) of the Overview of Tax Legislation and Rates document.
http://cdn.hm-treasury.gov.uk/2011budget_taxation_overview.pdf
Taxation: Pensions
Mr Bain: To ask the Chancellor of the Exchequer what arrangements he plans to put in place to ensure that persons of pensionable age do not incur additional tax liabilities arising from any merger of income tax and national insurance; and what estimate he has made of the transitional costs which would arise from managing such arrangements. [50101]
Mr Gauke: I refer the hon. Member to paragraph 1.77 of the Budget 2011 document available at:
http://cdn.hm-treasury.gov.uk/2011budget_complete.pdf
The Government will publish an initial consultation document later this year to consult on the options,
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stages and timing of reforms to integrate the operation of income tax and national insurance contributions (NICs).
The Government will not extend NICs to individuals above state pension age or to other forms of income such as pensions, savings and dividends.
Taxation: Oil
Mr Bain: To ask the Chancellor of the Exchequer what his most recent estimate is of the level of revenue accruing to the Exchequer from taxation on oil production companies in (a) the last four financial years and (b) the next four financial years. [49719]
Danny Alexander: Government revenues to 2009-10 from UK oil and gas production are published as National Statistics on the HMRC website, in Table 11.11, at the following link:
http://www.hmrc.gov.uk/stats/corporate_tax/table11_11.pdf
A forecast of UK oil and gas revenues to 2015-16 was published at Budget 2011 by the Office for Budget Responsibility, in Table C.3 on page 92, at the following link:
http://cdn.hm-treasury.gov.uk/2011budget_annexc.pdf
Mr Bain: To ask the Chancellor of the Exchequer with reference to Budget 2011, HC 836, whether he has assessed the likely extent of fluctuation in the level of revenue accruing from the tax on oil production levied on companies operating within the UK in the next four financial years. [50316]
Justine Greening: The Office for Budget Responsibility published its “Economic and fiscal outlook” on 23 March 2011. Selected tables from the report are at annex C of the Budget 2011 report This includes a forecast of UK oil and gas revenues from corporation tax and petroleum revenue tax, in table C.3 on page 92, at the following link:
http://cdn.hm-treasury.gov.uk/2011budget_annexc.pdf
The “Economic and fiscal outlook” discusses the UK oil and gas revenues forecast on page 110, and the impact of oil prices on the fiscal forecast in box 4.1 on page 111. A link to the full report is as follows:
http://cdn.budgetresponsibility.independent.gov.uk/economic_and_fiscal_outlook_23032011.pdf
VAT: Training
Kwasi Kwarteng: To ask the Chancellor of the Exchequer how much revenue he expects to accrue to the Exchequer in each year from value added tax on pilot training. [50470]
Mr Gauke: No such estimate has been made. The information is not available.