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Written question asked by Grant Shapps (Conservative) on Thursday, 6 June 2019, in the House of Commons. It was due for an answer on Tuesday, 11 June 2019 (named day). It was answered by Jesse Norman (Conservative) on Tuesday, 11 June 2019 on behalf of the Treasury.

Public Sector: Tax Avoidance

Question

To ask the Chancellor of the Exchequer, what estimate he has made of the number of people working in the public sector that are subject to the 2019 loan charge; and if he will make a statement.

Answer

Disguised Remuneration (DR) schemes are contrived arrangements that pay loans in place of ordinary remuneration, with the sole purpose of avoiding income tax and National Insurance contributions. The loans are provided on terms that mean they are not repaid in practice, so they are no different to normal income and are, and always have been, taxable.

The Government estimates that around 50,000 individuals could be affected by the 2019 loan charge. Further information on who the charge affects can be found at page 17 of HM Treasury’s report on time limits and the charge on disguised remuneration loans:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/789160/DR_loan_charge_review_web.pdf.

This shows, for example, that 65% of the DR user population worked in business services, and only 3% worked in medical or education services.

Secondary information

Type
Written question
Reference
261176
Session
2017-19
Subjects
Employment Public sector Tax avoidance
Contains statistics
Yes
Link
View this Written question on www.parliament.uk