Alistair Darling claimed £1,400 in costs of accountancy advice for filling his personal tax return using expenses intended for public duties. This, along with other types of expenses claimed, caught HM Revenue and Customs interest and they have warned that MPs should pay tax on reimbursed fees paid to accountants providing personal tax advice or face penalties.
Advisers at Online Tax Return Specialists, TaxPenny state that the fact is that any expense claimed by the MPs for their personal benefit i.e. it was not necessary for work purposes should be disclosed to HMRC and the right tax should accordingly be paid. This is the law for all taxpayers and MPs are not exempt.
In his defense, Downing Street has stated that ‘Chancellor Alistair Darling and 13 other ministers named for taking advantage of the benefits issued statements insisting they have paid the tax they owe.’
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expenses for self employed can be found on our website.
Here are some of the other tax issues are the MPs facing:
- Capital Gains Tax on sale of ‘second’ home. Miss Blears, the Communities Secretary, recently agreed voluntarily to pay a £13,000 capital gains tax bill on the sale of her “second home” after the Telegraph disclosed that she had “flipped” her designated second home twice in a year.
- Tax exempt Relocation expenses: A bill submitted by Mr Darling in February, 2008, included the cost of receiving tax advice for “the treatment of rental expenses against income”. During 2007, Mr Darling rented out his London flat after becoming Chancellor and moving into a grace-and-favour apartment.
- Working from home- appropriate deduction of home as office expenses:’ Some MPs are also able to apparently carry out extensive work to their homes by designating their constituency offices at the same property.
- Purchasing equipement for work purposes- when is it allowable? Eight ministers, including Yvette Cooper, the Chief Secretary to the Treasury, and Miss Blears, bought digital cameras or camcorders using their office expenses.
- Mobile phones - Jacqui Smith, the Home Secretary, bought a £240 Apple iPhone for her husband on expenses. He works as her assistant. Employer rules for providing phones for work purposes- there is no tax due providing one mobile to person and this is for work purposes. Family members are not allowed . The husband must be employed by the govt and make a direct claim.
