Groups of companies which are owned by private equity funds are subject to the same UK tax rules as other companies. The UK has some of the world\u2019s most comprehensive rules limiting relief for interest. Tax relief is only available for interest on debts incurred for commercial purposes and on arm\u2019s length terms. It is further limited by the Corporate Interest Restriction, introduced from 2017 in line with the OECD-G20 Base Erosion and Profit Shifting project.<\/p>
<\/p>
Unlike profit taxes, a turnover tax would not take into account businesses\u2019 ability to pay, meaning those with low profit margins would be disproportionately burdened. If applied to all businesses in a supply chain, multiple layers of tax could accrue, the cost of which could be passed onto consumers. Rather than applying a general turnover tax, the UK has a value added tax, VAT, which applies to all companies with taxable turnover over the threshold, including companies owned by private equity funds.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2021-09-10", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-09-10T13:36:18.187Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-07-21", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Tax Allowances: Companies"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of restricting tax relief for private equity companies which take over UK-based companies to (a) prevent them from offsetting debt against their corporation tax liability and (b) require them to pay tax on their turnover.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4432", "label" : {"_value" : "Biography information for Patrick Grady"} } , "tablingMemberConstituency" : {"_value" : "Glasgow North"} , "tablingMemberPrinted" : [{"_value" : "Patrick Grady"} ], "uin" : "37498"} , {"_about" : "http://data.parliament.uk/resources/1286319", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1286319/answer", "answerText" : {"_value" : "
The Government is committed to supporting the self-employed population during the COVID-19 pandemic through a substantial package of support.<\/p>
<\/p>
The three Self-Employment Income Support Scheme (SEISS) grants combined provided up to £21,570 of support for each individual, placing the SEISS among the most generous schemes for the self-employed in the world. As of 31 December, about 2.7 million individuals have made claims totalling over £18.9 billion so far across all three grants.<\/p>
<\/p>
The claims window for the third grant closed on 29 January 2021. The Government committed on 24 September 2020 that there would be a fourth grant; details of which will be announced alongside other economic updates at Budget in March.<\/p>
<\/p>
The SEISS is not intended to provide a month-by-month replacement of income. Due to the volatility of self-employed income and the lack of granular data that HMRC hold on self-employed trading profits, precise mapping of income replacement month by month is not possible. Instead, the SEISS provides a lump sum payment to support eligible self-employed individuals whose businesses have been affected by coronavirus.<\/p>
<\/p>
The SEISS continues to be just one element of a substantial package of support for the self-employed. In addition to the SEISS, individuals may also have access to other elements of the package, including Bounce Back loans, tax deferrals, rental support, mortgage holidays, self-isolation support payments and other business support grants.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2021-02-22", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "153300"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-02-22T11:14:09.367Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-02-11", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Self-employment Income Support Scheme"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of bringing forward the next grant for the Self-employment Income Support Scheme to assist people who require support now.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4432", "label" : {"_value" : "Biography information for Patrick Grady"} } , "tablingMemberConstituency" : {"_value" : "Glasgow North"} , "tablingMemberPrinted" : [{"_value" : "Patrick Grady"} ], "uin" : "153283"} , {"_about" : "http://data.parliament.uk/resources/1284378", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1284378/answer", "answerText" : {"_value" : "
The temporary VAT reduced rate came into effect on 15 July 2020 and was initially scheduled to end on 12 January 2021.<\/p>
<\/p>
In order to continue supporting the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs, the Government extended the temporary reduced rate of VAT (five per cent) to goods and services supplied by the tourism and hospitality sectors until 31 March 2021.<\/p>
<\/p>
The Government keeps all taxes under review, and all stakeholder views are carefully considered. Any future decisions on tax policy will be made at Budget.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2021-02-10", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "149781"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-02-10T16:45:17.2Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-02-05", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Events Industry: VAT"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the reduced 5 per cent VAT rate on ticket sales for live events for financial year 2021-22.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4432", "label" : {"_value" : "Biography information for Patrick Grady"} } , "tablingMemberConstituency" : {"_value" : "Glasgow North"} , "tablingMemberPrinted" : [{"_value" : "Patrick Grady"} ], "uin" : "149780"} , {"_about" : "http://data.parliament.uk/resources/1284380", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1284380/answer", "answerText" : {"_value" : "
The temporary VAT reduced rate came into effect on 15 July 2020 and was initially scheduled to end on 12 January 2021.<\/p>
<\/p>
In order to continue supporting the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs, the Government extended the temporary reduced rate of VAT (five per cent) to goods and services supplied by the tourism and hospitality sectors until 31 March 2021.<\/p>
<\/p>
The Government keeps all taxes under review, and all stakeholder views are carefully considered. Any future decisions on tax policy will be made at Budget.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2021-02-10", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "149780"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-02-10T16:45:17.15Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-02-05", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Events Industry: VAT"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what discussions he has had with representatives of the (a) theatre and (b) live event industry regarding the potential effect of an increase in VAT on ticket sales to 20 per cent.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4432", "label" : {"_value" : "Biography information for Patrick Grady"} } , "tablingMemberConstituency" : {"_value" : "Glasgow North"} , "tablingMemberPrinted" : [{"_value" : "Patrick Grady"} ], "uin" : "149781"} , {"_about" : "http://data.parliament.uk/resources/1284069", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1284069/answer", "answerText" : {"_value" : "
The Self-Employment Income Support Scheme (SEISS) was designed to support eligible self-employed individuals by providing, in its third phase, a taxable grant worth 80% of average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. This is designed to ensure that support will be targeted to those self-employed individuals who need it most.<\/p>
<\/p>
Those individuals who are ineligible for the SEISS may be eligible for other elements of the Government\u2019s support package, including Bounce Back loans, tax deferrals, rental support, mortgage holidays, self-isolation support payments and other business support grants.<\/p>
<\/p>
Other businesses, including those in the self-catering accommodation industry, may benefit from the additional funding for businesses worth £4.6 billion across the UK. All local authorities in England have received an additional £500 million of discretionary funding to support their local businesses. This builds on the £1.1 billion discretionary funding which local authorities had previously received to support their local economies and help businesses affected by the COVID-19 crisis. This is on top of support being offered to businesses required to close through the Local Restrictions Support Grant and additional one-off grants.<\/p>
<\/p>
The Government encourages local authorities to use their Additional Restrictions Grant allocations to set up a discretionary grant scheme using this funding e.g. for those businesses who are affected by closures, but which are not legally closed. However, local authorities can also use it to support businesses indirectly including by providing additional guidance and support for businesses in their areas.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2021-02-09", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-02-09T13:08:02.34Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-02-04", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Holiday Accommodation: Self-employment Income Support Scheme"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what discussions he has had with representatives of the self-catering accommodation industry on enabling professional self-caterers to access the Self-Employment Income Support Scheme.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4432", "label" : {"_value" : "Biography information for Patrick Grady"} } , "tablingMemberConstituency" : {"_value" : "Glasgow North"} , "tablingMemberPrinted" : [{"_value" : "Patrick Grady"} ], "uin" : "149259"} , {"_about" : "http://data.parliament.uk/resources/1271827", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1271827/answer", "answerText" : {"_value" : "HMRC do not hire Debt Collection Agencies (DCAs) directly. DCAs are hired via the Debt Market Integrator (DMI) Framework, currently with Indesser. As a tax authority HMRC adopt a strengthened approach to tax compliance for their own procurements, conducting robust checks on each of the DCAs engaged through the DMI. None of the DCAs onboarded to the HMRC panel (of which there are 8) is based in offshore tax havens; all are registered and based in the UK."} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2021-01-11", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-01-11T13:34:40.71Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2020-12-16", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Revenue and Customs: Debt Collection"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the employment by HMRC of debt collection companies based in off-shore tax havens; and if he will make a statement.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4432", "label" : {"_value" : "Biography information for Patrick Grady"} } , "tablingMemberConstituency" : {"_value" : "Glasgow North"} , "tablingMemberPrinted" : [{"_value" : "Patrick Grady"} ], "uin" : "130768"} , {"_about" : "http://data.parliament.uk/resources/1270780", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1270780/answer", "answerText" : {"_value" : "
The off-payroll working rules (commonly known as IR35) have been in place for nearly 20 years and are designed to ensure that individuals working like employees but through their own company pay broadly the same Income Tax and National Insurance contributions (NICs) as those who are employed directly.<\/p>
<\/p>
These rules only apply to individuals who are working like employees under the current employment status tests, and do not apply to the self-employed.<\/p>
<\/p>
As part of the support the Government provided for businesses and individuals to deal with the economic impacts of COVID-19, the reform to the off-payroll working rules was delayed for one year, from 6 April 2020 until 6 April 2021.<\/p>
<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2020-12-17", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2020-12-17T14:38:22.383Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2020-12-14", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Off-payroll Working: Coronavirus"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the IR35 off-payroll working rules on self-employed contractors during the covid-19 outbreak.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4432", "label" : {"_value" : "Biography information for Patrick Grady"} } , "tablingMemberConstituency" : {"_value" : "Glasgow North"} , "tablingMemberPrinted" : [{"_value" : "Patrick Grady"} ], "uin" : "129043"} , {"_about" : "http://data.parliament.uk/resources/1270782", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1270782/answer", "answerText" : {"_value" : "
As set out in the Tax Information and Impact Note (TIIN) published in July 2019, the reform of the off-payroll working rules is not anticipated to have a specific impact on groups sharing protected characteristics.<\/p>
<\/p>