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| Version 1 | Version 2 |
|---|---|
| Taxman probes ministers' returns | Taxman probes ministers' returns |
| (about 3 hours later) | |
| Revenue officials are investigating if MPs have broken the law by not paying tax after claiming personal accounting costs on expenses, the BBC understands. | Revenue officials are investigating if MPs have broken the law by not paying tax after claiming personal accounting costs on expenses, the BBC understands. |
| Nearly 40 ministers were reimbursed a total of at least £25,000 for help with tax returns, the Daily Telegraph said, but such fees are not tax-deductible. | Nearly 40 ministers were reimbursed a total of at least £25,000 for help with tax returns, the Daily Telegraph said, but such fees are not tax-deductible. |
| It is unclear whether the MPs later paid any tax due, although Chancellor Alistair Darling said he had. | It is unclear whether the MPs later paid any tax due, although Chancellor Alistair Darling said he had. |
| The Labour Party said it believed MPs had "honoured" their tax liabilities. | The Labour Party said it believed MPs had "honoured" their tax liabilities. |
| This is the 19th day of allegations about MPs' expenses detailed in the Telegraph. | This is the 19th day of allegations about MPs' expenses detailed in the Telegraph. |
| It revealed that Tory MP for Bromsgrove in Worcestershire, Julie Kirkbride, pays her sister a £12,000 salary for part-time clerical work - even though she lives more than 100 miles away from the constituency in Dorset. | |
| Accountancy fees incurred in connection with the completion of a personal tax return are not deductible Revenue and Customs spokesman | Accountancy fees incurred in connection with the completion of a personal tax return are not deductible Revenue and Customs spokesman |
| It also suggests that John Greenway, Tory MP for Ryedale, North Yorkshire, claimed £500 for petunias and fuchsia for his London flat. | |
| The paper, which has obtained the expenses claims of all 646 MPs, also reports that nine cabinet ministers and 30 junior ministers used allowances meant for the running of their offices to pay for personal tax advice. | |
| It said MPs had been given specific guidance from the taxman in 2005 that advice on self-assessment tax returns could not be regarded as a tax-free expense and were in effect a "benefit in kind". | It said MPs had been given specific guidance from the taxman in 2005 that advice on self-assessment tax returns could not be regarded as a tax-free expense and were in effect a "benefit in kind". |
| A Revenue and Customs spokesman told the BBC: "It's a general principle of tax law that accountancy fees incurred in connection with the completion of a personal tax return are not deductible. | A Revenue and Customs spokesman told the BBC: "It's a general principle of tax law that accountancy fees incurred in connection with the completion of a personal tax return are not deductible. |
| "This is because the costs of complying with the law are not an allowable expense against tax. This rule applies across the board." | "This is because the costs of complying with the law are not an allowable expense against tax. This rule applies across the board." |
| David Grossman, of the BBC's Newsnight programme, said tax office sources had indicated they were looking at MPs' previous tax returns to see whether they had complied with the law. | David Grossman, of the BBC's Newsnight programme, said tax office sources had indicated they were looking at MPs' previous tax returns to see whether they had complied with the law. |
| Cabinet ministers named by the Telegraph included Communities Secretary Hazel Blears, who said she did not have the relevant papers to hand to say what tax she paid. | Cabinet ministers named by the Telegraph included Communities Secretary Hazel Blears, who said she did not have the relevant papers to hand to say what tax she paid. |
| 'Confused' | |
| Meanwhile, Mr Grossman said representatives of Foreign Secretary David Miliband had given a "confused" reply to the claims. | Meanwhile, Mr Grossman said representatives of Foreign Secretary David Miliband had given a "confused" reply to the claims. |
| It suggested that because he had paid accountancy fees out of his taxed income, before receiving the money back from the Commons authorities, "there was no liablility". | It suggested that because he had paid accountancy fees out of his taxed income, before receiving the money back from the Commons authorities, "there was no liablility". |
| "We put that point of view to a tax economist who, quite frankly, just laughed," Mr Grossman added. | "We put that point of view to a tax economist who, quite frankly, just laughed," Mr Grossman added. |
| Labour MPs have argued that tax advice relating to their work is a legitimate expense but the Tories say this is "completely wrong" and that any of the party's MPs charging the taxpayer for this will have to repay the money. | Labour MPs have argued that tax advice relating to their work is a legitimate expense but the Tories say this is "completely wrong" and that any of the party's MPs charging the taxpayer for this will have to repay the money. |
| A statement issued by the Labour party, on behalf of those named by the Telegraph, said: "To the best of my knowledge I am satisfied that I have honoured all my tax liabilities and will continue to do so. | A statement issued by the Labour party, on behalf of those named by the Telegraph, said: "To the best of my knowledge I am satisfied that I have honoured all my tax liabilities and will continue to do so. |
| "The House of Commons Fees Office provide all members with a P11D form which states all claims including those that are taxable. | "The House of Commons Fees Office provide all members with a P11D form which states all claims including those that are taxable. |
| "This includes professional services such as accountants. The member then exhibits this form in their self-assessment or passes to their accountant to process on their behalf." | "This includes professional services such as accountants. The member then exhibits this form in their self-assessment or passes to their accountant to process on their behalf." |
| MP's husband | MP's husband |
| The Telegraph has previously alleged that a number of ministers and backbenchers used the services of Dennis Bates, the accountant husband of Labour MP Meg Munn, for advice on their tax returns. | The Telegraph has previously alleged that a number of ministers and backbenchers used the services of Dennis Bates, the accountant husband of Labour MP Meg Munn, for advice on their tax returns. |
| Mr Miliband, Angela Smith, Gillian Merron, John Healey and Jim Knight are among those reported to have turned to Mr Bates for advice, reportedly charged £345 each in 2006-7. | Mr Miliband, Angela Smith, Gillian Merron, John Healey and Jim Knight are among those reported to have turned to Mr Bates for advice, reportedly charged £345 each in 2006-7. |
| Ms Munn - a former foreign office minister who pays her husband to work as a Parliamentary assistant - is also said to have claimed on taxpayer funded expenses for tax advice from her husband. | Ms Munn - a former foreign office minister who pays her husband to work as a Parliamentary assistant - is also said to have claimed on taxpayer funded expenses for tax advice from her husband. |
| Mrs Merron, Mr Healey, Mr Knight and Ms Smith issued a statement saying Mr Bates had worked for 12 years for the Inland Revenue and was "eminently qualified" to provide advice. | Mrs Merron, Mr Healey, Mr Knight and Ms Smith issued a statement saying Mr Bates had worked for 12 years for the Inland Revenue and was "eminently qualified" to provide advice. |
| Business groups have expressed concerns said MPs might be being "treated differently" to other taxpayers. | Business groups have expressed concerns said MPs might be being "treated differently" to other taxpayers. |
| If entrepreneurs sought professional tax advice, they had to pay the fee themselves and offset it against any profits on which they paid tax, it has been claimed. | If entrepreneurs sought professional tax advice, they had to pay the fee themselves and offset it against any profits on which they paid tax, it has been claimed. |