CONSERVATIVE
New Forest East

TREASURY – LOAN CHARGE: VOLUNTARY RESTITUTION REPAYMENTS [63197] – 23 June 2020

Dr Julian Lewis: To ask the Chancellor of the Exchequer, with reference to Sir Amyas Morse's Review of the Loan Charge, what estimate he has made of the (a) amount that HMRC will repay in Voluntary Restitutions in relation to payroll loan schemes covered by the 2019 Loan Charge already received, (b) number of employers that will receive a payment and (c) the value of the repayments received by employers.  [63197] 

[Due for Answer on 29 June.] 

ANSWER

The Financial Secretary to the Treasury (Jesse Norman): An estimated 1,000 individuals and 1,000 employers who have already settled their disguised remuneration liability will be due a repayment of voluntary restitution.

HMRC do not have estimates of the number who have entered insolvency or sold properties.

HMRC currently estimate that about £380m of voluntary restitution could be refunded to employers and individuals as a result of the change, with the vast majority estimated to be due to employers. The final value could depend on whether all eligible taxpayers claim their refund and whether, in line with the recommendation of the independent review accepted by the Government, refunds need to be reduced to prevent an unintended windfall, for example where an employer has enjoyed corporation tax relief on the voluntary restitution that they paid.