MPs still having a taxing time
The 2009 expenses scandal that exposed many MPs for claiming where they shouldn’t have had the nation screaming for reform. This led to the Independent Parliamentary Standards Authority (IPSA) being set up to oversee the changes that needed to be made – but which, in its turn, is creating unrest with MPs complaining that it is too heavy-handed, and that its processes are too complicated – even though it is defending MPs when it comes to off-setting their accountants as tax-deductible.
Tax inspectors are challenging MPs who are claiming accountancy fees on expenses because they claim this is a personal benefit, and so taxable. IPSA, however, is arguing that MPs are, in effect, self-employed, and so should be given the same benefits – which includes being able to employ an accountant at a cost of up to £5000 per annum, and not being taxed on it.
HMRC’s argument is that the expenses are personal, and so, therefore, is the use of an accountant to deal with them.
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