HMRC questions MPs’ accounting expenses

The tax department has been challenging the practice of MPs claiming tax deductions for the cost of employing accountants to prepare their expense claims and tax returns, The Guardian reports.

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Comments

As Harry Enfield would say ...    3 thanks

mikewhit | | Permalink

"claims against accounting fees of up to £5,000 a year per MP" ?

They saw you coming !!

 

A handful of fulltime civil-service accountants/accounts clerks should be provided to do the accounts work for all the MPs

If you are required to file a tax return

ThornyIssues | | Permalink

You should be able to claim the cost of professional advice in doing so. That goes for everyone. No quibble.

frustratedwithhmrc's picture

In principle, I agree

frustratedwithhmrc | | Permalink

ThornyIssues wrote:
You should be able to claim the cost of professional advice in doing so. That goes for everyone. No quibble.

However, you could imply this as being 'rent seeking' from the Accountancy profession.

You have to laugh....    3 thanks

justsotax | | Permalink

the 'employee' questioning the 'employer'.....of course it will be 'impartial'  (just don't mention the rather favourable expenses dispensation the revenue have for its own employees)

 

...words that come to mind when MP's mentioned...........'trough....noses....in....the'

benefit in kind

david5541 | | Permalink

mikewhit wrote:

""claims against accounting fees of up to £5,000 a year per MP" ?

They saw you coming !!

 

A handful of fulltime civil-service accountants/accounts clerks should be provided to do the accounts work for all the MPs"

the problem is none of the mp's agree with each other and the whole system has become corrupt/a gravy train even more like the EU/brussells/EEC ever since mp's and the house of lords got allowances instead of salaries...

 

thats what comes with voting for your own package.

 

its time for mps and senior civil servants/oh I mean consultants/ to go back onto PAYE and earn a bit of public respect.

 

 

If HMRC cave in on this...    1 thanks

louisVW4 | | Permalink

...would the average Joe have a case if he used the very same arguments?

Money or tax relief ?

mikewhit | | Permalink

The article did not make it clear (to the reader unfamiliar with MP expense terminology) whether the MPs were claiming extra cash from a central pot, or whether they were trying to allocate some expenditure as a permitted expense.

In the first case, the fee in question would amount to an extra payment to the MP.

In the second case, the amount in dispute would only relate to the tax on the fees.

MPs’ accounting expenses

HUGH W DUNLOP | | Permalink

Whether it is cash from a central pot or otherwise, the question is really do they get receipts for these outlandish fees? What respectable accountancy firm would charge this much for a job which could be completed by a junior in about half an hour? It looks more like the more common case where they employ their wives as secretaries on about £30,000 per annum.

How stupid!

geoffwolf | | Permalink

An MP is not an employee (but is perhaps an office holder) in the normal sense as the constituents he/she represents do not employ him/her. Therefore any number of expenses incurred would not necessarily be incurred by a different person by reason of the MP work that they do. To my mind accountancy falls into a similar category and should be allowed purely in that part of the fee that relates to parliamentary work and formulation of relevant expense claims.