Jeremy Corbyn rejects '˜missing income' claim in tax return

Jeremy Corbyn has insisted there is 'nothing missing, nothing hidden' in his tax affairs as Labour rejected allegations he failed to declare £40,000 of income.

Jeremy Corbyn has rejected claims there is a gap in his published tax return. Photo: Victoria Jones/PA Wire

The party said it was confident the details of Mr Corbyn’s tax return were in order after the leader faced questions over his earnings.

Details released on the Labour leader’s website on Sunday said he earned £114,342 in 2015/16, on which he paid £35,298 in tax.

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The Labour leader said: “Transparency invites scrutiny. I welcome it as should all those seeking highest office.

“My taxes fully paid, nothing missing, nothing hidden.”

Mr Corbyn’s tax return showed he earned £77,019 from all employments, £36,045 from UK pensions and state benefits, £1,200 profit from self employment, and £78 in interest from UK bank and building societies during the period.

Mr Corbyn was reportedly entitled to an extra £39,272 a year as leader of the opposition on top of the basic £74,000 salary for MPs in 2015/16.

But Labour said he received an extra payment of £27,192 for the role, which was recorded in the document.

A Labour spokesman said: “Claims in some media that Jeremy Corbyn failed to declare £40,000 of income to the taxman are untrue.

“The extra payment following Jeremy’s election as Labour leader of £27,192 is recorded in the tax return under the heading of ‘public office’.

“We are confident the total income of £114,342 in the tax return is correct, as is the income tax charge of £35,298. Nearly all the tax was paid at source.”

The release of his tax statement came after Chancellor Philip Hammond dismissed a challenge from shadow chancellor John McDonnell to publish his tax returns.

Mr Hammond told the BBC: “No. I have no intention of doing so.

“Just for the record my tax affairs are all perfectly regular and up to date.

“But I think this demonstration politics isn’t helping the atmosphere in British politics.”

Mr McDonnell has already made his tax affairs public, saying people should be proud of their contributions to public services.

The shadow chancellor has said a Labour government would make everyone earning above £1 million publish their tax records.

A Labour source said Mr Corbyn had used accountants to examine his tax situation, adding: “We are absolutely confident Jeremy has paid all his tax, because it is taxed at source.”

Shadow home secretary Diane Abbott, a close ally of Mr Corbyn, told BBC Radio Four’s Westminster Hour: “He couldn’t possibly be intending to deceive anybody.”

Asked if she would release her tax returns, Ms Abbott said: “I think we are going to have to discuss this as a shadow cabinet if we all going to publish our tax receipts.

“If that’s what we agree to do, certainly I’ll do it.”