Workers’ services provided to public sector through intermediaries

Part of Finance (No. 2) Bill – in the House of Commons at 1:45 pm on 25 April 2017.

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Photo of Jane Ellison Jane Ellison The Financial Secretary to the Treasury 1:45, 25 April 2017

Given where we are in this Parliament, the best thing the hon. Lady can do is to send details on that, immediately and before Dissolution, so that HMRC can look at the factual issues. I am surprised by what she says, but let us ask HMRC to look at the practical issues she raises—while we are off doing other things, it can perhaps look at those if she supplies the information in the next few days. HMRC has worked with the Cabinet Office Crown Commercial Service to produce guidance for public authorities and has supported them to implement the changes.

Government amendment 10 is a technical one to ensure that the reform only applies to the public sector, as set out in the Government’s original announcement.

In conclusion, the Government believe it is essential to ensure that public funds are used correctly and that those in receipt of them are paying the correct amount of tax. The changes being made by clause 7 and schedule 1 will improve compliance with the tax rules, raising a substantial amount of revenue by 2021-22. I therefore ask Members to support this clause and schedule, along with clause 8, schedule 2, clauses 11 and 48, schedule 16 and clause 127.