Finance (No. 2) Bill – in a Public Bill Committee at 2:30 pm on 27 April 2021.
Angela Eagle
Labour, Wallasey
With this it will convenient to discuss the following:
Government Amendment 19.
That Schedule 28 be the Twenty-eighth schedule to the Bill.
Jesse Norman
The Financial Secretary to the Treasury
Clause 116 harmonises interest charges and repayment interest in order to bring VAT in line with other taxes, including income tax self-assessment. As with the reforms to penalties that we just discussed, these reforms to interest are designed to provide greater consistency, fairness and certainty in the system. These changes will take effect by way of regulations for VAT tax payers for accounting periods beginning on or after
The Government’s Amendment 19 to schedule 28 will ensure that repayment interest applies for VAT where HMRC has raised a reasonable inquiry or where HMRC is correcting errors or omissions relating to a particular VAT return. This will allow for repayment interest to be paid to taxpayers for the period covering HMRC’s investigations, as is already the case for income tax self-assessment and corporation tax.
HMRC’s policy is always to make payments to taxpayers as soon as possible when a repayment is due. As taxpayers expect, this can only be done once HMRC has undertaken checks to guard against fraud and to protect the public finances. The Government are committed to treating taxpayers fairly and consistently. We have consulted extensively on these measures and listened carefully to stakeholder feedback, including on this detail.
James Murray
Shadow Financial Secretary (Treasury)
As we have heard, Clause 116 and schedule 28 make amendments to the Finance Act 2009 relating to late payment and repayment interest for VAT. We understand that these changes generally ensure that late payment and repayment interest work in the same way for VAT as they currently do for income tax self-assessment. We recognise that the clause and schedule make amendments to repayment interest on VAT to bring it in line with income tax self-assessment, ensuring that interest is charged and paid to customers consistently across taxes. We do not oppose the clause’s standing part of the Bill.
A parliamentary bill is divided into sections called clauses.
Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.
During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.
When a bill becomes an Act of Parliament, clauses become known as sections.
A parliamentary bill is divided into sections called clauses.
Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.
During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.
When a bill becomes an Act of Parliament, clauses become known as sections.
As a bill passes through Parliament, MPs and peers may suggest amendments - or changes - which they believe will improve the quality of the legislation.
Many hundreds of amendments are proposed by members to major bills as they pass through committee stage, report stage and third reading in both Houses of Parliament.
In the end only a handful of amendments will be incorporated into any bill.
The Speaker - or the chairman in the case of standing committees - has the power to select which amendments should be debated.
