Calculation of salaries and tax arrangements for MPs and their staff

Request

You requested information concerning salaries and tax deductions for MPs and their staff.

Specifically, you asked for information about:

  1. Who calculates the MPs’ monthly salaries? i.e. net salaries after deductions of national insurance and tax?

  2. Who calculates the MPs’ staff monthly salaries? i.e. net salaries after deductions of national insurance and tax?

  3. Who retains the MPs and their staff’s official tax codes?

  4. Who is responsible for sending the deductible MPs and their staff’s income tax to the PAYE?

  5. Who retains the MPs’ and their staff records? Also (a) full names and addresses? (b)date of birth?


Response

I can confirm that IPSA holds the information you have requested. However, there are a couple of areas where further clarification may be needed to ensure that we have correctly identified the information you would like.

Members of Parliament employ their staff directly on agreed pay scales that are set by IPSA. IPSA is responsible for administering, regulating and paying MPs' salaries. Staff working directly for Members of Parliament are recruited and employed by the MP. IPSA is responsible for paying the salary of the staff member.

IPSA is responsible for administering, regulating and paying MPs' business costs and expenses. This includes calculating net salaries after deductions for MPs and their staff in accordance with HM Revenue and Customs (HMRC) rules and guidance.

In order to ensure the correct deductions are made, IPSA holds records of the tax codes for MPs and their staff. HMRC will tellsIPSAwhich code to use. In connection with our responsibilities, IPSA holds payroll records for MPs and their staff, which include details of names and addresses, and dates of birth.

Request for clarification

Further clarification may be needed for us to respond to question (4) Who is responsible for sending the deductible MPs and their staff’s income tax to the PAYE?

Pay-As-You-Earn (PAYE) is HMRC’s system to collect income tax and national insurance from employment. It is not an organisation which receives these deductions.

We have therefore interpreted your question as asking who is responsible for reporting and paying deductions to HMRC. As the body responsible for administering and paying the salaries of MPs and their staff, IPSA pays tax and national insurance deducted at source for MPs and their staff in accordance with HMRC's rules and the information provided by MPs and their staff.

Ref:
CAS-159188
Disclosure:
January 29, 2020
Categories:
MPs' STAFFINGMPs' PAY AND PENSIONS
Exemptions Applied: