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.
The newspaper reignited the controversy surrounding MP’s expenses this week after obtaining correspondence between HMRC and the Independent Parliamentary Standards Authority (Ipsa) under the Freedom of Information Act in which the tax department argued that the current practice of allowing claims against accounting fees of up to £5,000 a year per MP is a benefit in kind rather than an expense incurred in the course of their parliamentary work.
Although MPs receive their salary under a PAYE scheme, Ipsa maintained that the way they operated their offices was similar...
About John Stokdyk
John Stokdyk is the global editor of AccountingWEB UK and AccountingWEB.com.