Row over 'tax advice on expenses'
Senior Cabinet ministers who recouped the cost of accountancy advice on their expenses should pay tax on the claims, it has been reported.
The Daily Telegraph said nine Cabinet ministers and more than 30 other frontbenchers claimed back the cost of personal tax advice on their expenses.
But in a joint statement by ministers they insisted they had met all their tax liabilities.
Ministers have said their expenses claims for accountancy bills were allowed within parliamentary rules, the Telegraph reported.
Those behind the statement included Home Secretary Jacqui Smith, Foreign Secretary David Miliband, International Development Secretary Douglas Alexander, Environment Secretary Hilary Benn, Communities Secretary Hazel Blears, Transport Secretary Geoff Hoon and Work and Pensions Secretary James Purnell.
They said: "To the best of my knowledge I am satisfied that I have honoured all my tax liabilities and will continue to do so."
A HM Revenue and Customs (HMRC) spokesman said: "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."
The newspaper said MPs had already been given specific guidance by HMRC prohibiting such tax-free claims, which accountants say constitute a "benefit in kind" and should be taxed.
Issued in 2005, the guidance states that "accountancy fees incurred in the preparation of the self assessment tax return or related expense claims" are "not allowed" as tax expenses.
The paper reports that 42 members of the Government claimed a total of at least £25,000 for accountancy costs.
