House of Commons
paying for Speaker’s
tax bills

Use of parliament’s prestigious residences has been classed as a personal taxable benefit by HM Revenue & Customs.

But for at least the past four years the Commons has agreed to meet liabilities, which cover running costs and council tax, with public money.

The staff make a “contribution” of a few hundred pounds a year each, although it is not clear whether the Speaker does.

Protracted negotiations with HMRC also now seem to have left Mr Bercow’s residence exempt from tax altogether – as while he is housed by the Commons, he is paid directly from government coffers. The Speaker’s office has declined to clarify whether he still incurs a tax liability.

Details of the arrangements – which appear far more generous than those granted to David Cameron and George Osborne for their Downing Street flats – came to light after a series of freedom of information requests.

Mr Bercow has used a controversial blanket exemption to avoid disclosing details of the negotiations with HMRC.

But enough information has now been released to give a picture of the arrangements in place at the Commons.

A spokesman said while provision of the accommodation itself was not liable to tax, personal usage of the living facilities – such as heating, lighting, furniture and other items – had been treated as a benefit in kind between 2008 and 2010.

For the Speaker, who lives with his family and housekeeper in the apartments, it was £4,300 in 2009-10 and no figure has been calculated by the Commons since.

Typically, such benefits in kind are treated as extra income and subject to tax. However, the spokesman made clear that the officials were not paying. Instead, the benefits are “grossed up” to work out their value as pre-tax salary, and the House meets the bill.

Matthew Sinclair, chief executive of the TaxPayers’ Alliance, said: “It’s incredible that taxpayers have been footing the tax bills of senior Commons officials like the Speaker – in addition to providing their grace-and-favour homes.”