Lucy Rigby
MP for Northampton North · Labour · United Kingdom
“Border communities rely on strong transport links, and my hon. Friend is a strong advocate for the interests of his constituency and those in the surrounding area. The Government are delivering for people in all parts of the UK, including investments that will benefit those on both sides of the English-Welsh border.”
“Nothing was snuck out. A third runway at Heathrow means more than 60,000 good local jobs, and more than £40 billion for the British economy. The hon. Lady’s question rather highlights the Lib Dems’ curious approach to growth.”
“My right hon. Friend the Member for Makerfield (Andy Burnham) will speak for himself, but I am confident that his view is that growth extends far beyond the area that the hon. Gentleman referred to.”
“Effective transport links are vital to the prosperity and wellbeing of people across the country, including in our border communities. We have been working closely with the Welsh Government to deliver a plan for Welsh rail, and we continue to work with devolved Governments to ensure that border communities stay connected.”
“We have been clear that Heathrow expansion needs to benefit everyone, not just London. The Department for Transport has shown that expansion would deliver UK-wide support for trade, with 40% of the estimated GDP benefits from expansion being outside London and the south-east.”
“The Pride in Place programme provides £5.8 billion of support to 284 neighbourhoods right across the country, including five places in my hon. Friend’s constituency, which she does so much to advocate for. We will set out more details of further funding in the Budget.”
The complete record
Every one of 601 lines we hold for Lucy Rigby, in date order, each linked to its source. Free to read, in full, without an account. Page 4 of 13.
“Clause 124 ensures that those who do not comply with the relevant regulations for the duty and stamps scheme are liable to penalties. Finally, clause 125 provides for the forfeiture of legitimate vaping products to complement the penalties imposed under the previous clauses. I commend the clauses to the Committee.”
“Anyone selling illicit vapes puts the public at risk and undermines legitimate businesses. One million illegal vapes were seized by trading standards in the last full year for which statistics are available, so we know that this is a significant enforcement challenge. Clause 121 introduces enforcement powers to protect the integrity of the vaping duty stamps scheme. The changes made by clause 122 support robust compliance efforts under the vaping products duty and the stamps scheme, ensuring that only legitimate vaping products are supplied in the UK and penalising those who do not comply with the law. The changes made by clause 123 penalise those who lose stamps or attempt to use invalid stamps on illegitimate products to circumvent the rules.”
“He will be pleased to know—he may already know—that the interim guidance is already on gov.uk, if he is stuck for things to do this evening. I think I am right in saying that the points raised by the Liberal Democrat spokesperson, the hon. Member for Maidenhead, as to liability under these offences will be made explicitly clear in the guidance, such that there is no doubt in those circumstances. Question put and agreed to . Clause 121 accordingly ordered to stand part of the Bill . Clauses 122 to 125 ordered to stand part of the Bill. Clause 126 Dealing in duty stamps Question proposed, That the clause stand part of the Bill.”
“I am sure we all understand that without such powers, rogue traders can treat penalties as simply a cost of doing business while continuing to profit from illicit trade, and I am sure we all want to avoid that. The shadow Exchequer Secretary made a number of points about ensuring that the use of powers is proportionate. Given the judicial or criminal processes associated with the use of these powers, it is entirely fair to say that all the usual processes around charging, in a criminal sense or otherwise, will apply. Inherent within those processes are balance and fairness, including taking into account the rights of the accused. It is good to mention the draft guidance, which will be shared with HMRC-run industry groups well ahead of the go-live date on 1 April, which I hope is sufficiently specific for the shadow Exchequer Secretary.”
“The comments of the shadow Exchequer Secretary, the hon. Member for North West Norfolk, refer to the deliberately tough nature of the enforcement regime; there is a real emphasis on deterrence, and there are penalties that apply. It includes the forfeiture powers, which are targeted at serious non-compliance. Where retailers are found selling unstamped products outside duty suspense or breaching key obligations under the scheme, HMRC and Border Force will have the power to seize associated vaping products, including legitimate duty-paid stock. As I said, that is part of a deliberately tough enforcement regime and is a strong deterrent aimed at those who choose to mix illegal products with legitimate ones on the same premises.”
“In summary, the clauses represent a comprehensive suite of enforcement tools that support the Government to address the illegal trade and support the legitimate industry. I therefore urge that clauses 126 to 130 stand part of the Bill.”
“Clause 126 introduces two new criminal offences, to which we have already alluded, for possessing or transferring duty stamps in contravention of the scheme rules. Clause 127 introduces the two new criminal offences that I have just described, and sets out a defence for the purposes of those offences. Clause 128 introduces the power for a court to ban the sales of vaping products, along with an associated criminal offence for non-compliance with the order. Clause 129 sets the level of the penalty associated with the offences, according to the respective legal systems of the devolved nations. Clause 130 introduces additional powers to allow HMRC to enforce the new rules around vaping products by taking illicit products off shelves.”
“Clause 126 accordingly ordered to stand part of the Bill. Clauses 127 to 130 ordered to stand part of the Bill. Clause 131 Publication of information Question proposed, That the clause stand part of the Bill.”
“All prosecutions, as hon. Members will know, must meet the public interest test. The test that the Crown Prosecution Service must meet has two limbs: the evidential and public interest elements. Both limbs must be met for prosecutions to be brought. The hon. Member for Newton Abbot referred, fairly, to clause 126(3) and 127(3), which outline the defence that is applicable to both offences. As he helpfully mentioned, it is a defence for a person charged with offences under sections 126 and 127 to “prove that they did not know, suspect or have reason to suspect” that they were possessing or transferring a duty stamp that had not been affixed to a vaping product. In that regard, on the question about proof of knowledge, I return to the CPS’s test and to the burden of proof that applies in proceedings in the UK. Question put and agreed to.”
“The shadow Exchequer Secretary raised a point about the strong penalties associated with the regime. I have already set out the Government’s aim: that the enforcement mechanisms in the Bill are deliberately tough and are aimed at being a strong deterrent. We believe that the strong penalties, including custodial sentences, are justified due to the size of the illicit vaping market in the UK. Indeed, that goes to the shadow Exchequer Secretary’s point about our assessment of the illicit market and the assessment of abuse. We understand that there is a large illicit market in this area. The powers are deliberately tough, with the aim of ensuring that there is no circumvention. I will now address the fair points that were made previously by the hon. Member for Newton Abbot and raised again in the context of these clauses.”
“Clause 138 provides that the duty and the scheme will commence on 1 October 2026, and that vaping products manufactured or imported before that date will be liable if a duty stamp is affixed to that product. Two technical amendments are proposed to clause 138. Amendment 13 clarifies the drafting to ensure elements of the regulations can come into force at the proper time. Amendment 14 puts beyond doubt that the criminal offences under these schemes can apply to vaping products, regardless of the date that they were produced or imported. The amendments ensure that the duty can be successfully administered, and neither one reflects any change in Government policy.”
“The changes made by clause 133 provide a definition for local enforcement authorities and allow them to investigate whether businesses in their local areas are compliant with the duty. Clause 134 ensures that HMRC can make regulations and publish notices to make further provisions in relation to both the duty and the scheme. Clause 135 provides that regulations must be made by statutory instrument and sets out circumstances in which the made-affirmative procedure must be followed, including any provision that extends the cases in which vaping products are required to be stamped. Clause 136 allows for schedule 14 to the Finance Act 2020 to make changes to the Finance Acts of 1994, 2007, 2008, 2017 and 2021. Clause 137 does not make changes to legislation but merely ensures that the Bill is interpreted correctly.”
“Clauses 131 to 138 and Schedule 14 set out general provisions to ensure the effective implementation of the duty and the scheme. Clause 131 allows for the publication of information to ensure effective enforcement of the duty and the scheme. Clause 132 details the instances in which information may be shared between the commissioners and any persons with functions relating to the duty. It will allow information to be transferred in both directions, ensuring successful implementation and the proper joining up of compliance efforts. For any unauthorised disclosure, the clause includes an offence under section 19 of the Commissioners for Revenue and Customs Act 2005.”
“The shadow Exchequer Secretary asked about HMRC making compliance-checking methods available. There will be an app for access based on scans of products. It will be available before 1 October, and no scanning will be required before that date. He, fairly, asked a question about the flow of information. That is covered by subsections (3) and (4) of clause 132, which ensure that information can be used only for the purposes for which it was disclosed. Indeed, any other purpose would require further permission from the commissioners. Subsection (4) sets out the penalties that would apply for contravening the preceding provisions. The shadow Exchequer Secretary also asked about the resources available to trading standards and local authorities. He mentioned Norfolk, is that right?”
“Amendment 14: in clause 138, page 146, line 27, after “2027” insert “, and have effect in relation to vaping products irrespective of when they were produced or imported”— (Lucy Rigby.) This amendment would clarify (in light of the fact that stamping requirements are to be set out in regulations) that the criminal offences can apply to vaping products produced or imported before the Act is passed or the regulations are made. Clause 138 , as amended, ordered to stand part of the Bill. Clause 139 Introduction to CBAM”
“Clause 138 Commencement and transitional provision Amendments made: 13, in clause 138, page 146, line 24, at end insert— “( ) Sections 114(4) (production only in accordance with regulations) and 117(1) (duty to stamp in accordance with regulations) come into force on such day as the Treasury may by regulations appoint.” This amendment would allow the requirements to produce and stamp vaping products in accordance with regulations to be brought into force at the same time as the regulations.”
“Giving these powers to local authorities, backed by additional resource, will help to ensure that the new regime is enforced on the ground and that compliant retailers are protected from what would otherwise be unfair competition. Question put and agreed to. Clause 131 accordingly ordered to stand part of the Bill. Clauses 132 to 136 ordered to stand part of the Bill. Schedule 14 agreed to. Clause 137 ordered to stand part of the Bill.”
“Beautiful Norfolk—I know it very well. He compared Norfolk with more metropolitan areas. Local enforcement authorities, particularly trading standards, play a central role in tackling illicit vapes on the high street, and as has been mentioned, over 1 million illegal vapes have been seized in a single year under existing powers. Clause 133 gives local authorities the powers they need to conduct inspections and checks relating to both the duty and the scheme, to ensure that compliance work can be carried out effectively at retail level. That will complement the work of HMRC, which happens upstream. We have already announced additional funding for trading standards in the context of wider tobacco and vaping measures, alongside £10 million for Border Force and the recruitment of over 300 HMRC compliance officers focused on this area.”
“The schedule aligns CBAM administration with established HMRC processes where possible, helping to minimise additional burdens on businesses while ensuring robust compliance. Clause 149 introduces schedule 17, which provides for criminal offences relating to CBAM. Those offences apply in serious cases, such as deliberate evasion or fraudulent behaviour, and mirror existing approaches taken elsewhere in the tax system. The inclusion of criminal offences ensures that appropriate deterrents are in place, protecting the integrity of the regime and ensuring a level playing field for compliant businesses. Together, clauses 148 and 149 provide the necessary administrative and enforcement backbone for CBAM. They ensure that the regime is credible, enforceable and fair, while giving HMRC the tools it needs to administer CBAM effectively.”
“I appreciate your accommodation of the cold in the room, Sir Roger. I hope this afternoon proves that we can be both sartorially elegant and warm. Committee members may take their own view, but I look forward to this afternoon. Clauses 148 and 149 and schedules 16 and 17 provide the administrative and enforcement framework necessary to ensure the effective operation of CBAM. They ensure that CBAM can be administered properly by HMRC, complied with by businesses, and enforced where necessary. The clause introduces schedule 16, which makes detailed provision for the administration and enforcement of CBAM, including requirements for registration, accounting periods, CBAM returns, record keeping, payment deadlines, assessments, penalties and appeals.”
“On the Liberal Democrat spokesperson’s point about thresholds, the threshold will retain over 99% of CBAM imports while removing 80% of otherwise registrable businesses, and over 70% of those removed from CBAM altogether by the threshold will be micro, small and medium-sized businesses. Question put and agreed to. Clause 148 accordingly ordered to stand part of the Bill. Schedule 16 agreed to. Clause 149 ordered to stand part of the Bill. Schedule 17 agreed to. Clause 150 Supplementary amendments Question proposed, That the clause stand part of the Bill.”
“However, the Government recognise that alignment with existing regimes—the Liberal Democrat spokesperson, the hon. Member for Maidenhead, referred to the EU CBAM and, indeed, to the ETS—can reduce administrative burdens, so where possible we will align with and build upon existing methodologies for calculating embodied emissions, as well as rules for monitoring reporting and verification under the ETS. As hon. Members know, CBAM is not expected to have significant macroeconomic impacts or a significant impact on prices for individuals, households and families. CBAM imports make up only around 1% of average UK industry input costs. Therefore, as the Exchequer Secretary said, the Government do not expect CBAM to have a material impact on food prices, and the impact on farmers would be modest.”
“The shadow Exchequer Secretary’s points about the criminal offences are similar to some of the points that were raised earlier in relation to other criminal offences set out in the Bill. I made the point in relation to those other offences, and I make it again here, about the standards that the CPS, or indeed any other prosecutorial authority, has to meet in satisfying both the evidential test and the public interest test. I am not sure that I need to take up the invitation to liaise with the Law Officers in that regard. Questions were fairly raised about proportionality and the burden on businesses. The UK CBAM will operate like a conventional tax, in order to simplify the administrative and compliance burden for those who need to comply without, we think, undermining the environmental integrity of CBAM.”
“This allows imported goods originating in countries with linked emissions trading scheme arrangements to be excluded from CBAM, reflecting international co-operation and avoiding unnecessary duplication. Clause 154 sets out how regulations and notices under CBAM are to be made, including the applicable parliamentary procedures, to ensure appropriate scrutiny, with affirmative or made affirmative procedures applying where regulations have a significant impact. Clause 155 provides for commencement and transitional arrangements. CBAM will apply to goods imported on or after 1 January 2027, with powers to smooth the transition during the initial years of operation. In summary, clauses 150 to 155 and schedule 18 provide the essential supporting framework that allows for the effective functioning of CBAM, and I commend them to the Committee.”
“Clauses 150 to 155 and schedule 18 make the general, supplementary and commencement provisions for CBAM. They are designed to ensure that CBAM integrates properly with the wider statute book, operates coherently over time and comes into force as intended from 1 January 2027. More specifically, clause 150 introduces schedule 18, which makes supplementary amendments to other legislation to ensure that CBAM operates consistently alongside existing customs and tax law. Clauses 151 and 152 provide key definitions and interpretation provisions, including the meaning of “emissions”, “carbon dioxide equivalent”, “importer” and “CBAM good”. These clauses are designed to ensure clarity and legal certainty across the regime. Clause 153 provides a power to make provision in relation to linked emissions trading schemes.”
“The UK will also engage through the UK CBAM international group, which serves as a forum through which the UK Government can understand the views of international partners and share updates. The shadow Exchequer Secretary will forgive me for reiterating what I know he already knows, which is that all tax policy is kept under review. He rightly refers to our desire to smooth the transition—that is absolutely key. We will ensure that there is sufficient time built in to facilitate that smooth transition, and time to test systems as well. Question put and agreed to. Clause 150 accordingly ordered to stand part of the Bill. Schedule 18 agreed to. Clauses 151 to 155 ordered to stand part of the Bill. Clause 156 Prohibition of promotion of certain tax avoidance arrangements Question proposed, That the clause stand part of the Bill.”
“The shadow Exchequer Secretary referred to some of the points agreed at the EU-UK summit last May. As he knows, the EU and the UK agreed to work towards linking our respective ETSs. He will not expect me to comment on ongoing negotiations, so I will not do that, but I will say that we are committed to working closely with all interested stakeholders, including international partners, through the CBAM policy design process and, of course, we consulted extensively on the design and implementation of this measure. We have conducted information sessions at the World Trade Organisation and had extensive bilateral engagement with over 30 jurisdictions since announcing our intention to introduce a CBAM in December 2023.”
“That will ensure that the regulations take effect immediately, protecting the Revenue and taxpayers, while also ensuring proper oversight by this House. For anyone breaching the prohibition or the regulations, civil penalties may apply under clause 159, or a criminal offence under clause 160. Under clause 161, where a responsible person has led an entity or partnership to commit a criminal offence through their consent, connivance or neglect, that criminal offence will also apply to them. Clause 162 contains relevant definitions and commencement provisions. In summary, this measure will allow HMRC to stop the promotion of tax avoidance and tackle the persistent group of promoters. It will ensure that taxpayers and the UK tax system are protected from the harm caused by these promoters.”
“Clause 156 will prohibit the promotion of avoidance arrangements that have no realistic prospect of success, as well as enabling HMRC commissioners to prohibit further arrangements in regulations. Any arrangements specified must have been, or be likely to be, marketed to seek a particular tax advantage, unlikely to result in that tax advantage, and likely to cause harm to taxpayers. Clause 157 provides for the definition of “promotion” of arrangements. It includes important exemptions, such as where goods and services are provided on commercial terms without the knowledge that they are being used to promote tax avoidance, or where legally privileged advice or information is provided. Clause 158 requires regulations implementing this policy change to be subject to the made affirmative procedure.”
“This measure will prohibit certain tax avoidance schemes from being promoted without HMRC first having to notify promoters, and will put a stop to promoters playing a game of cat and mouse with HMRC. These clauses are about targeting those who continue to promote tax avoidance. They are not intended to be directed against legitimate tax advisers who are operating to a high professional standard but, while acting in good faith, make genuine mistakes. Furthermore, the Exchequer Secretary has asked HMRC officials to work with stakeholders in developing published guidance to address the fine detail of exactly how the prohibition will work in practice. I turn to the individual clauses.”
“Clauses 156 to 162 introduce a new statutory prohibition on the promotion of tax avoidance arrangements. If you will forgive me, Sir Roger, I will set out a little more background on these clauses than I have on others, which I think is important. HMRC already can and regularly does stop people promoting marketed avoidance schemes, where it can identify the person or company doing the promotion. However, the controlling minds behind avoidance schemes often simply close down the company they use to promote the scheme before promoting a very similar scheme from a new company with different directors—everyone will be familiar with that concept of phoenixing. HMRC needs to identify and issue a new stop notice to each new entity and, during that time, promoters continue to sell the scheme and cause harm to taxpayers and the UK tax system.”
“I welcome the support from the official Opposition and the Liberal Democrats for these measures. As I said—I will repeat it because we have all had lunch since—these clauses are about targeting those who continue to promote tax avoidance; they are very much not intended to be directed against legitimate tax advisers who operate to a high professional standard but who may, acting in good faith, make a genuine mistake.”
“That has evolved into the prohibition and the regulations that now require the approval of Parliament. In the light of stakeholder concerns around the threshold to issue regulations, HMRC introduced the taxpayer harms test to limit what arrangements are caught by the measure, ensuring that legitimate advisers are not in scope of the measure. The marketing test was originally drafted as “could be marketed”, but following consultation it was amended to “likely to be”, precisely to narrow the power.”
“On the consultation with industry, we have consulted extensively on these measures. What was originally described as the universal stop notice was introduced as part of a 12-week consultation by HMRC in March 2025. A further eight-week consultation was held on the draft legislation after it was published on L day. The initial consultation received 37 written responses from a range of stakeholders—primarily those in the tax and legal sectors—while a further 19 responses were received in response to the L day consultations. Importantly, three key changes were made in response to those stakeholder concerns, including the rule of law concerns given voice to by the Law Society regarding universal stop notices and giving HMRC legislative power that ultimately carries a criminal offence.”
“The shadow City Minister gives voice to a legitimate concern, and I was about to come on to some of the ways we are tackling it. As I said before lunch, the Exchequer Secretary has asked HMRC officials to work with stakeholders in developing the fine detail everyone wants to see in the guidance on how this prohibition will work in practice. The power in clause 156 will allow HMRC to make regulations only where arrangements have been or are likely to be marketed, where they are unlikely to work and where they are likely to cause harm to taxpayers. That limits HMRC’s scope to proscribe arrangements. The power is not at all intended so that HMRC can ban advisers from recommending tax positions they think are right, based on all the facts of the law, but with which HMRC disagrees.”
“The hon. Gentleman’s concern goes to the point that I have addressed twice now, once before lunch and once after. The measures are not intended to be directed at legitimate tax advisers who operate to a high standard but make a genuine mistake. By virtue of the consultations, the changes to the proposed legislation and the fact that detailed draft guidance will be issued, I hope that hon. Members will be comfortable with the intention behind the legislation and the impact that it will have.”
“I will do exactly that, although hon. Members will have to forgive me because I do not have the notes in front of me. It is right to say that promoter action notices are legal notices that require businesses to stop providing goods or services where those services are used in the promotion of avoidance. Of course, such a notice can be issued only in the case of a breach of a stop notice or if the prohibition on promoting tax avoidance—also included in the Bill—also applies. Question put and agreed to. Clause 156 accordingly ordered to stand part of the Bill. Clauses 157 to 162 ordered to stand part of the Bill . Clause 163 Certification of promoters Question proposed , That the clause stand part of the Bill.”
“To conclude, these changes, recommended by the IMF, align the fiscal framework with the Government’s commitment to hold a single major annual fiscal event. Taken together with the larger buffer against the fiscal rules at the last Budget, this measure will support stability for households and businesses right across the country.”
“The OBR will continue to produce two five-year forecasts for the economy and public finances each year, but it will now be required to assess performance against the fiscal rules only at the autumn Budget. The spring forecast will now provide an interim update on the economy and public finances, and the Government will not normally respond with fiscal policy, unless there is a significant change in economic conditions. Where there are small fluctuations between Budgets, it is right that the Government take fiscal decisions in the round only at the Budget. This will in no way impact the Government’s adherence to the fiscal rules, which remain iron-clad. They will continue to be assessed at every Budget and the Government will always meet them.”
“The clause will improve the fiscal cycle in support of the Government’s commitment to having one major annual fiscal event. In line with recommendations made by the International Monetary Fund, the Office for Budget Responsibility will now assess the fiscal rules only once per year, at the Budget, when the Government will set out their fiscal strategy. That will help create a more predictable framework and strengthen economic and fiscal stability. The clause will reduce the minimum number of occasions on which the OBR must prepare an assessment of performance against the fiscal rules from two to one in each financial year. That will apply from the current financial year onwards.”
“The OBR is, of course, critically important. The best demonstration of why is the hon. Gentleman’s party’s previous Government. He referred consistently to the Chancellor having to repair the public finances, but seemingly with a huge amount of brass neck. He ought to be asking himself why the Chancellor needed to repair the public finances. The answer is of course that after 14 years of his party being in government, the public finances were in dire need of repair. Question put and agreed to . Clause 251 accordingly ordered to stand part of the Bill . Clause 252 Data-gathering Question proposed, That the clause stand part of the Bill.”
“Fourthly, they will place obligations on data holders to collect, verify and report specific tax identifiers, such as national insurance numbers, which will help HMRC to improve the amount of data that it can match to existing customer records. Fifthly, they will reform the penalty regime to ensure that data holders comply with their obligations. HMRC thinks that the measure will cost around £50 million to implement; however, the OBR has certified that it will raise £845 million in additional tax revenue from 2028 to 2031.”
“Clause 252 and schedule 22 introduce new provisions for HMRC to acquire improved data from specific data holders to be used for risk assessment, tax administration and compliance. The improved data will help taxpayers to get their tax right first time while closing the tax gap. First, the clause and schedule will introduce standing reporting obligations, replacing the current manual notices issued to data holders. Secondly, they will increase the frequency and improve the timeliness with which data holders report data, bringing data reporting closer to real time so that HMRC can use it proactively to help customers get their tax right first time. Thirdly, they will standardise the format for how HMRC receives the data, reducing errors and improving efficiency when ingesting it into HMRC systems.”
“The Bill is clear that the improved data that HMRC will collect as a result of the measure will be strictly limited to the purposes for which it is necessary for HMRC to discharge its tax functions. He will know that HMRC has a statutory duty of confidentiality to protect taxpayers’ information. It can share data only where there is an express legal provision to do so provided by Parliament. As to the wider implication in the hon. Member’s question, I can assure him that the Government take data privacy extremely seriously. As such, this measure is compliant with all legal data obligations, and HMRC continues to work with the industry, and legal and data experts, to ensure that all relevant requirements are met.”
“On the shadow City Minister’s point about people who are less au fait with digital means, I can reassure him that people will be able to provide information to HMRC in all the traditional ways. Indeed, the Exchequer Secretary referred earlier to some of the recent improvements that have been made to HMRC’s phone lines. With regard to the points made by the hon. Member for Newton Abbot, HMRC already receives bulk data from third parties, such as financial institutions, relating to interest-bearing products, and card sales data from card-acquiring services. This measure will improve and modernise the way HMRC acquires that data from third parties, and will have all the benefits I have just described.”
“Clause 254 adds new powers for HMRC to create regulations for exemptions from Making Tax Digital for income tax. It allows HMRC to cancel existing requirements if an exemption is granted after the tax year has started and to issue directions enabling further exemptions. Clause 255 adds new powers for HMRC to make a certain set of regulations. Clause 256 is consequential to changes introduced in clause 255. Clause 257 will allow HMRC to move customers to digital by default more easily, and clause 258 enables HMRC to require digital contact details, such as email addresses or mobile phone numbers, from customers using HMRC digital services at secure digital touchpoints. These changes provide the legislative basis for the Making Tax Digital for income tax programme.”
“Clauses 253 to 256 amend existing legislation to digitalise and improve the accuracy of tax reporting through HMRC’s Making Tax Digital for income tax programme. Clauses 257 and 258 make changes to enable HMRC to modernise how it communicates with customers digitally. Clauses 253 to 255 amend schedule A1 to the Taxes Management Act 1970 to support new digital record keeping and reporting obligations for sole traders and landlords who pay income tax. Clause 253 is a procedural one. It sets out some exemptions and defines key terms for later regulations. It clarifies that a “relevant person” is an individual with taxable income, a “relevant partnership” includes at least one individual partner, and “relevant activity” refers to business activities that may incur income tax.”
“Clause 253 accordingly ordered to stand part of the Bill. Clauses 254 to 258 ordered to stand part of the Bill. Clause 259 Penalty points and late submission penalties (power to cancel etc)”
“This measure is designed to target customers who are already using HMRC’s digital services, and it is important to important to bear that in mind. More broadly, HMRC’s customer service is improving. It is improving its IT systems and investing in the digital aspects, which have higher approval rates. As the Exchequer Secretary said earlier, some of these matters are trending in the right direction, albeit I accept that there is further to go. I welcome the support for these measures from the hon. Member for Wyre Forest. I am sorry if I was not effusive enough for him; I shall be effusive now. He will be shocked to hear me reiterate that we keep all tax policy under review, and that statement continues to apply to the matters he raised in relation to this clause. Question put and agreed to.”
“The hon. Member for Maidenhead raises a series of important points on financial and digital inclusion, which are matters close to my heart. He will have spotted the publication of the financial inclusion strategy a couple of months ago, which I hope contains many measures that he welcomes on the matters he was raising. Older customers and those with certain disabilities are more likely to be digitally excluded or digitally assisted and may be disproportionately reliant on paper correspondence. Safeguards will be included to ensure that those groups can continue accessing paper communications if specifically needed, with a clear and simple opt-out process and ongoing support through non-digital channels.”