Employment income provided through third parties

Part of Finance (No. 2) Bill – in a Public Bill Committee am 10:45 am ar 9 Ionawr 2018.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General 10:45, 9 Ionawr 2018

The hon. Lady asked a specific question about clause 12 and schedule 2, on the timing of the requirement for payment of the loan charge and how that interacts with the self-assessment deadline. I will come back to her on that inquiry with a specific and detailed answer.

The hon. Lady is absolutely right, however, that since 2011 we have been clamping down on avoidance schemes, as I said in my opening remarks, and we have had considerable success, although we feel that the job is not yet done. We made it clear with the Finance Act 2017 and with further tightening in this Finance Bill that we will push even further in that direction, so that those schemes that are not paid off or sorted out with the Revenue before April 2019 will incur a penalty charge. We believe that is certainly the right direction of travel.

I want to return to my earlier comments about the hon. Lady’s amendment. The consistency issue in how HMRC applies penalties for late provision of information is extremely important. We believe that the amount is proportionate. Let us not forget that when we stand back and look at the overall picture of HMRC’s success in clamping down on tax avoidance and evasion, as well as non-compliance, we see that since 2010 we have brought in £160 billion that would otherwise not have been available to the Exchequer. We have one of the lowest tax gaps in the world, at just 6%, which is certainly lower than it was under the Labour Government. We are succeeding, albeit that there is more to do.