May 2008 27

A £23,000 tax-free grant for MPs7

PigstroughThe Times reports that MPs are asking for a £23,000 grant so that they do not have to submit expenses claims and receipts, and can avoid the details becoming public:

"Days after the High Court ordered the publication of every receipt submitted by MPs, a committee reviewing parliamentary expenses is proposing that they should be able to claim the full £23,000 second-home allowance automatically as an annual “block grant”.

This would end the principle whereby MPs are compensated only for “costs incurred” and give nearly 250 MPs who claim less than £23,000 a substantial tax-free income boost."

Normally this kind of thing would not be allowed by HMRC.  It is an increase in pay by any other name and would therefore be taxed.  Will the authorities allow there to be one rule for the politicians, another for the rest of us?  Or will taxpayers be asked to cover the new grant and the tax on it?

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  • Robert W. Gough

    Dear Sir,
    I cannot understand how persons living rent free in luxurious accommodation, as does the Speaker,P.M. and other ministers, are be able to claim a second home allowance. An allowance to improve their primary accommodation, from whence they come.
    After pocketing the difference between buying and selling houses, bought with the help of the £23,000 second home allowance, provided by the taxpayer, can we expect MPs to claim the differece if the house sells at a loss?
    To ask Donald MacLean, who originally instigated the keeping secret of these expenses & The Speaker, who is up to his neck in in these excesses, to come up with a solution to this problem is an absolute disgrace. It is like asking Robert Maxwell to head an inquiry into the Daily Mirror pension fund scandal
    They seem intent on dragging down the reputation of the Houses of Parliament.
    Can’t they understand that they have been found out? Why can’t they abide by the rules most other working persons in this country have to abide by. This is public money and as such should be accounted for and there for all to see on what it was spent.
    My young daughter and her partner work all hours to manage their mortgage and bring up their kids. To think that a portion of their hard earned money goes to subsidising MPs highlife. I think the word is “Shameless”
    R.W. Gough

  • steve

    It would be nice to hear something positive from David Cameron at this point, in terms of a positive attitude to the criticism being levelled at all MPs.
    This is a situation in which there is little likelihood of ideas being stolen by the deviants and cheats within the NuLab gang and in which the Tory Party could elevate itself above the gutter occupied by the present government.
    Strong and transparent policies are required to begin the process of restoring respect for politicians generally. So, come on David, let’s hear from you.

  • paul nolan

    If a worker receives reimbursement for expenses (hotel,fuel etc) incurred while working away from their normal place of work this is tax free unless this time exceeds , or is expected to exceed 24 months, at which time it becomes taxable. Can we assume therefore that MP’s pay tax on their expenses for working in London ?

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