Would you swap your 5% for an MP's expenses?
Apparently some MPs are allegedly using public money to line their own pockets. Or at least that is the reason given for an investigation and new proposals to control MPs' Office Cost Allowance.
Compared to the 5% allowance permitted under the new IR35 rules, MPs currently have their cake and eat it. The annual allowance is worth £50,264 and is supposed to be used by MPs to set up offices and hire staff in their constituencies and Westminster. Much like being in business on your own account really. Except if you are in the Commons you have access to free furniture, post and phone calls. And of course, you could employ your wife or partner as a part-time member of staff to use public money to inflate household income.
However new proposals are looking to stop this sort of abuse. Instead, staff would be direct employees of the Commons (although MPs are still free to choose who they employ). This will allow 'substitution' of staff during holidays etc. The Office Cost Allowance will be reduced to cover basic office expenses, such as PCs etc.
Some MPs are reportedly in favour of the new proposals, although many have been heard to grumble about the changes. From a contractor's point of view, this may mean a small levelling of what is already a very bumpy playing field – perhaps it is time MPs were made to taste their own medicine with their cake.