The taxman is looking at whether MPs paid tax on accountancy advice they
received and claimed against expenses.
The expenses claimed on such advice is not tax-deductible, and HM Revenue
& Customs is looking at whether the 40 ministers who claimed have paid the
Telegraph had earlier reported that the ministers had claimed
a total of at least £25,000 for help with tax returns. Chancellor Alistair
Darling said he had paid any tax due on his claims.
Labour said it believed ministers had honoured their tax liabilities.
An HMRC 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.’
HMRC had given this advice to MPs in 2005.
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