Peers could be forced to pay tax on expenses

Peers are under pressure to pay tax on thousands of pounds of expenses
incurred for attending parliament.

Accountants from mid-tier firm Grant Thornton said peers could be asked to
pay tax on their the £174-a-day attendance allowance, the Observer reports.

Mike Warburton, tax director at GT, said HMRC could decide to charge the MPs
tax on the allowance, owing to the fact that it is a “round sum” and not ”
wholly exclusively and necessarily incurred” in the performance of their
parliamentary duties.

A spokesman for HMRC said members of the upper house are not taxed on their
allowance, as it is a fixed amount to cover the costs of all expenses relating
to their attendance.

Read the full story:
demand Lords pay tax on expenses

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