The Government has set out an ambition to become one of the most digitally advanced tax authorities in the world.

Making Tax Digital (MTD) is the first phase of our move towards a modern, digital tax service fit for the 21st century. It supports businesses through their digitalisation journey and provides...

The Government has set out an ambition to become one of the most digitally advanced tax authorities in the world.

Making Tax Digital (MTD) is the first phase of our move towards a modern, digital tax service fit for the 21st century. It supports businesses through their digitalisation journey and provides...

Clauses 212 to 295 agreed to, with clauses 212, 222, 242, 244, 251, 266, 270 and 272 agreed to as amended. Schedules 29 to 34 agreed to, with schedules 28, 31, and 32 agreed to as amended. New clause 1 (Lower rate of tax), negatived on division (13 votes to 18). New clause 2 (Higher rate of tax), negatived on division (14 votes to 18). New clause 3 (Personal allowance for those born after 5 April 1948), negatived on division (14 votes to 18). New clause 4 (Capital gains tax and employee shareholders), negatived on division (14 votes to 18). New clause 5 (Review of reform to the annual investment allowance), negatived on division (14 votes to 18). New clause 7 (False self-employment in the construction sector), negatived on division (14 votes to 18). New clause 6 (Report on the additional rate of income tax) not called. New clause 8 (Pension flexibility: Treasury analysis) not called. Written evidence reported to the House: FB 03 Mr Girish Patel; FB 04 EDF Tax Ltd. Bill, as amended, to be reported (Bill 10 2014-15).

Clauses 212 to 295 agreed to, with clauses 212, 222, 242, 244, 251, 266, 270 and 272 agreed to as amended. Schedules 29 to 34 agreed to, with schedules 28, 31, and 32 agreed to as amended. New clause 1 (Lower rate of tax), negatived on division (13 votes to...

Clauses 61 to 64 agreed to. Schedule 11 agreed to. Clause 65 agreed to. Schedule 12 agreed to. Clauses 66 and 67 agreed to. Clause 68 under consideration when Committee adjourned till 10 June. Bill, so far as amended, to be reported (carried over as Bill 1 2014-15).

Clauses 61 to 64 agreed to. Schedule 11 agreed to. Clause 65 agreed to. Schedule 12 agreed to. Clauses 66 and 67 agreed to. Clause 68 under consideration when Committee adjourned till 10 June. Bill, so far as amended, to be reported (carried over as Bill 1 2014-15).

The hon. Gentleman may not have the figures, but can he possibly disaggregate them, because over the same period a new regime of limited liability partnerships came in, which enabled partnerships to incorporate, and some of them are included in the figure of 372,000 to which he referred? It does...

The hon. Gentleman may not have the figures, but can he possibly disaggregate them, because over the same period a new regime of limited liability partnerships came in, which enabled partnerships to incorporate, and some of them are included in the figure of 372,000 to which he referred? It does...

I know that the hon. Gentleman is anxious to make his first intervention in Committee—in many respects it is surprising that it has taken 14 minutes for him to try to do so—but he will have to wait a moment longer. Those changes have been unpicked, and they will affect...

I know that the hon. Gentleman is anxious to make his first intervention in Committee—in many respects it is surprising that it has taken 14 minutes for him to try to do so—but he will have to wait a moment longer. Those changes have been unpicked, and they will affect...

Will the hon. Gentleman give way?

Will the hon. Gentleman give way?

This is a debate about what is happening in the aftermath of that debate. It is rather rich of the Government to come back five years later, and almost airbrush out the history of those measures, ignoring the fact that they started that process by altering the balance between incorporation...

This is a debate about what is happening in the aftermath of that debate. It is rather rich of the Government to come back five years later, and almost airbrush out the history of those measures, ignoring the fact that they started that process by altering the balance between incorporation...

I am grateful to the hon. Gentleman for his usual generosity. I, too, served on the Standing Committee that considered the Finance Bill of 2002, and I remember some of those arguments—they are hazy, to use his adjective about his own memory and, indeed, about mine in some respects. However,...

I am grateful to the hon. Gentleman for his usual generosity. I, too, served on the Standing Committee that considered the Finance Bill of 2002, and I remember some of those arguments—they are hazy, to use his adjective about his own memory and, indeed, about mine in some respects. However,...

Does the hon. Gentleman accept that in the 2002 Budget to which he referred, and the 2000 and 1999 Budgets, in which we made changes to the small companies rate, we made it clear that our policy purpose in making those changes was to encourage growth, investment and innovation?

Does the hon. Gentleman accept that in the 2002 Budget to which he referred, and the 2000 and 1999 Budgets, in which we made changes to the small companies rate, we made it clear that our policy purpose in making those changes was to encourage growth, investment and innovation?

I think that I took part in the scrutiny of the Finance Act 2002, and I heard the Financial Secretary’s colleague, the Paymaster General, make the assertions that he has just made. The error that the Government made then was to assume that companies were the only engines of enterprise....

I think that I took part in the scrutiny of the Finance Act 2002, and I heard the Financial Secretary’s colleague, the Paymaster General, make the assertions that he has just made. The error that the Government made then was to assume that companies were the only engines of enterprise....

Was it not widely predicted, even back in 2002, that the zero rate of corporation tax would result in a lot of small businesses incorporating in order to benefit from a better taxation system? The mess that the Government have got themselves into was entirely predictable, even in 2002.

Was it not widely predicted, even back in 2002, that the zero rate of corporation tax would result in a lot of small businesses incorporating in order to benefit from a better taxation system? The mess that the Government have got themselves into was entirely predictable, even in 2002.

My hon. Friend is right. According to my hazy recollection of the scrutiny of the 2002 Finance Bill, the Institute for Fiscal Studies produced estimates of the tax cost of the zero per cent. corporation tax rate, and the Government rather dismissed those estimates at the time. The wave of...

My hon. Friend is right. According to my hazy recollection of the scrutiny of the 2002 Finance Bill, the Institute for Fiscal Studies produced estimates of the tax cost of the zero per cent. corporation tax rate, and the Government rather dismissed those estimates at the time. The wave of...

Is not it the Conservative party’s policy to encourage small businesses to invest, because that will lead to their greater prosperity, productivity and growth? Does not the hon. Gentleman accept that a company with profits of up to £100,000 that invests half the profits will end up paying 40 per...

Is not it the Conservative party’s policy to encourage small businesses to invest, because that will lead to their greater prosperity, productivity and growth? Does not the hon. Gentleman accept that a company with profits of up to £100,000 that invests half the profits will end up paying 40 per...

My hon. Friend makes an important point. The Chancellor is loading incentives towards a specific sort of business. If businesses invest in research and development and physical assets, the Government will give them some tax relief and allowances, but if they do not, they will not be able to claim...

My hon. Friend makes an important point. The Chancellor is loading incentives towards a specific sort of business. If businesses invest in research and development and physical assets, the Government will give them some tax relief and allowances, but if they do not, they will not be able to claim...

Is not that another example of the Chancellor simply saying, ““I’m going to take your taxes and you can claim them back as a business person but only if you do exactly as I say””? It is management by the clunking fist, not the invisible hand of Adam Smith.

Is not that another example of the Chancellor simply saying, ““I’m going to take your taxes and you can claim them back as a business person but only if you do exactly as I say””? It is management by the clunking fist, not the invisible hand of Adam Smith.

That assumes that small businesses take up the allowances and reliefs that are available. The Chief Secretary was careful in his choice of words, because all small businesses can claim the increase in allowances, regardless of whether they are incorporated. The average benefit from the increase in allowances is approximately...

That assumes that small businesses take up the allowances and reliefs that are available. The Chief Secretary was careful in his choice of words, because all small businesses can claim the increase in allowances, regardless of whether they are incorporated. The average benefit from the increase in allowances is approximately...