Thursday, 24 June 2010

A Good Day To Bury Bad News?

With all the hype about the budget filling the media, an article in the print edition of the Daily Telegraph (of which no trace can be found on the DT website) caught my eye yesterday evening. Authored by Holly Watt, it read:

"MPs expenses will be exempted from tax, it emerged yesterday.

Legislation will be introduced to ensure that the politicians receive tax relief on a series of allowances.

Relief has previously been granted as 'concessions' from HM Revenue and Customs.

But amendments to the 2003 Income Tax Earnings and Pensions Act (ITEPA) will be brought in to ensure that MPs continue to receive tax relief for travelling between their homes and their offices.

Other workers do not receive tax relief for commuting.

Another change to ITEPA will mean that MPs will continue to avoid tax on the second home allowance. Housing allowances would usually be regarded as a benefit-in-kind and taxed accordingly.

Special provisions will also be introduced to ensure that reimbursement for 'the costs of evening meals purchased by MPs and eaten on the Parliamentary estate' continue to be exempt from tax."
 No further comment!

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