The Chancellor of the Exchequer has not had any recent discussions nor made any recent assessment as referenced in these questions.<\/p>
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The charge on disguised remuneration loans (the Loan Charge) was legislated in Finance (No.2) Act 2017. Changes to the Loan Charge were enacted in Finance Act 2020 in line with the accepted recommendations made in Lord Morse\u2019s Independent Loan Charge Review.<\/p>
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HMRC published their report to Parliament on GOV.UK in December 2020. This covers the implementation of changes to the Loan Charge and next steps for affected taxpayers, including individuals and employers.<\/p>
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At Budget 2021, the Government committed to invest further in HMRC to fund compliance work on the Loan Charge, historic disguised remuneration cases and early intervention to encourage individuals to exit tax avoidance schemes. HMRC will continue to monitor compliance with the Loan Charge.<\/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" : "2021-07-06", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "24173"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-07-06T16:32:16.63Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-06-29", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Tax Avoidance"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, with reference to HMRC's Freedom of Information Team's response to FOI request (FOI2021/00393) and the email of 31 January 2019 from HMRC's First Permanent Secretary and Chief Executive within that FOI response, what recent discussions he has had with relevant stakeholders on the effectiveness of the legislative framework governing HMRC's enforcement of the Loan Charge against (a) employees and (b) employers.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4084", "label" : {"_value" : "Biography information for Esther McVey"} } , "tablingMemberConstituency" : {"_value" : "Tatton"} , "tablingMemberPrinted" : [{"_value" : "Esther McVey"} ], "uin" : "24172"} , {"_about" : "http://data.parliament.uk/resources/1341715", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1341715/answer", "answerText" : {"_value" : "
The Chancellor of the Exchequer has not had any recent discussions nor made any recent assessment as referenced in these questions.<\/p>
<\/p>
The charge on disguised remuneration loans (the Loan Charge) was legislated in Finance (No.2) Act 2017. Changes to the Loan Charge were enacted in Finance Act 2020 in line with the accepted recommendations made in Lord Morse\u2019s Independent Loan Charge Review.<\/p>
<\/p>
HMRC published their report to Parliament on GOV.UK in December 2020. This covers the implementation of changes to the Loan Charge and next steps for affected taxpayers, including individuals and employers.<\/p>
<\/p>
At Budget 2021, the Government committed to invest further in HMRC to fund compliance work on the Loan Charge, historic disguised remuneration cases and early intervention to encourage individuals to exit tax avoidance schemes. HMRC will continue to monitor compliance with the Loan Charge.<\/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" : "2021-07-06", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "24172"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-07-06T16:32:16.677Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-06-29", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Tax Avoidance"} , "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 recent assessment he has made of the effectiveness of the legislative framework governing HMRC's enforcement of the Loan Charge against (a) employees and (b) employers.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4084", "label" : {"_value" : "Biography information for Esther McVey"} } , "tablingMemberConstituency" : {"_value" : "Tatton"} , "tablingMemberPrinted" : [{"_value" : "Esther McVey"} ], "uin" : "24173"} , {"_about" : "http://data.parliament.uk/resources/1341866", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1341866/answer", "answerText" : {"_value" : "
Like all employers, umbrella companies are responsible for paying employer National Insurance Contributions (NICs) where they are due. Employers cannot, by law, deduct employer NICs from an employee's gross pay. The payment of employer NICs out of the umbrella company\u2019s fee may be shown on the same payslip as deductions, such as Income Tax, from the employee\u2019s gross pay, meaning that it can look as if an individual is paying the employer NICs, when this is not actually the case.<\/p>
<\/p>
The Government improved transparency for agency workers by introducing the Key Information Document from 6 April 2020. This sets out a range of pay-related facts, including the minimum rate of pay an agency worker can expect, who pays them, how often they are paid, and if there are any deductions or fees taken from their pay. Any differences between the rate of pay given to the umbrella company by the employment business and the sum given to the agency worker (after fees and deductions) must be accounted for and explained.<\/p>
<\/p>