MPs’ Ability to Claim for Accountancy Help with Tax Returns could be Scrapped
According to the Kelly Report, MPs’ ability to claim for accountancy costs should be scrapped.
A report published in The Daily Telegraph revealed that many MPs use their tax-free office expenses to pay accountants, who have been drafted in to help them complete their annual tax returns.
“It seems unfair that MPs should be allowed to claim for accountancy costs and then use their tax-free expenses to pay for it. Ordinary voters are prevented from claiming for accountancy services, it isn’t considered a legitimate business expense” says Kevin Kinsella, chief executive of UK tax experts KinsellaTax Investigations Ltd.
According to the Telegraph report at least 42 Government ministers, including the Chancellor Alistair Darling, claimed a total of £25,000 for individual tax advice.
Kevin Kinsella continues, “HMRC is now investigating several of the MPs implicated in order to find out whether tax laws have been broken. It seems that out of all the ministers involved, only five paid tax on their accountancy perk, despite being required to under UK tax laws.”
The Kelly Report itself admits that current guidelines allow MPs to claim for accountancy costs however, it suggests that “It is difficult to see how this practice can be justified. The Committee is not aware of any other organisation where it would be allowed, and HMRC regards payment of such claims as a taxable benefit in kind.”
The report therefore recommends that government rescind this perk, and suggests that new proposals should make MPs’ accounts “easier to manage”, thus removing the need for help from a qualified accountant.
KinsellaTax Investigations Ltd. specialise in the investigation of UK and European tax fraud. The company has over 120 years’ experience of the tax investigation industry and operates nationwide. For more information, visit their website at: http://www.kinsellatax.co.uk/.
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