Source · Select Committees · Public Accounts Committee
Recommendation 11
11
Accepted
Weaknesses in the Departments’ data also contributed to the schemes providing support to taxpayers whose...
Conclusion
Weaknesses in the Departments’ data also contributed to the schemes providing support to taxpayers whose incomes were not significantly affected by the COVID-19 pandemic. Eighteen percent of the value of the first three SEISS grants—around £3.5 billon—was paid to people who saw their turnover increase in 2020–21 even without the grant. While around £6.5 billion of furlough paid between March 2020 and October 2020 went to employers who saw their turnover increase or stay the same, of which £1.5 billion was paid to employers who said they would not have made redundancies or closed permanently without CJRS.17
Government Response Summary
The government agrees with the committee's recommendation and has consulted on options for improving the range of data HMRC collects, uses and shares, including collecting data on employee hours worked, dividends received, and start and end dates of self-employment, with implementation planned from April 2024.
Government Response
Accepted
HM Government
Accepted
2: PAC conclusion: Gaps and lags in HMRC’s data contributed to the schemes providing excessive support to some, while others in need were ineligible. 2: PAC recommendation: The Departments should set out, by July 2023, their priorities for obtaining data which would enable the better targeting of economic support. In doing so, they should consider how they can keep burdens on customers proportionate. 2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 From July to October 2022, the government consulted on options for improving the range of data HMRC collects, uses and responsibly shares across government, to provide an accurate and up to date picture of citizens and businesses. Some options were focused on specific customer groups, such as the self-employed, whilst others proposed collecting a particular piece of information across different customer groups (e.g., occupation). 2.3 Following careful consideration of the views of respondents to the consultation, the government published a response on 27 April 2023. This set out a measured and proportionate approach to prioritising the collection of data that customers already hold, 17 including specific options that will be taken forward in a future Finance Bill with the intention to collect this data from April 2024. 2.4 The government will prioritise three options: collection of data on employee hours worked via Real Time Information PAYE reporting, dividends received from owner-managed businesses via the Self-Assessment return and start and end dates of self-employment, as set out in the consultation. The government also previously set out plans for the introduction of Making Tax Digital for Income Tax, which will provide a more up-to-date data picture of the income and expenditure levels of self-employed customers with a qualifying income of more than £50,000 per annum from 2026 and £30,000 from 2027, through quarterly updates. 2.5 The government will continue to review the data it collects to ensure future policy measures requiring economic support are effectively targeted whilst also balancing the cost of collection.