Ed Balls Window Cleaner Story Isn't Quite As Embarrassing As We All Thought

Ed Balls Window Cleaner Story Isn't Quite As Embarrassing As We All Thought
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Shadow chancellor Ed Balls unveils Labour's new poster marking the government's reduction in the 50p tax rate, in London.
Stefan Rousseau/PA Archive

Ed Balls has been accused by the Tories of "total hypocrisy" after his window cleaner admitted that the Labour frontbencher has never been asked for a receipt for his £12 monthly clean.

Tory MP Peter Bone made the swipe when the Daily Mail tracked down Balls' local window in his Yorkshire constituency of Morley and Outwood for a two-page report.

The controversy comes after Balls suggested people should collect receipts from tradesmen for cash-in-hand jobs as a way to ensure no tax is avoided.

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The Mail's two-page story on Ed Balls' window cleaner

However, the story starts to get confused after the 7th paragraph in the Daily Mail article, in which it is revealed that Pontefract Window Cleaning Services wrote customers a note to inform them money is due, and actually "had never been asked for a receipt" by any of their clients.

John Durning, who cleans the MP's windows, told the newspaper: "It only takes me about ten minutes to do, it’s no problem. After each clean I drop a note through the door which states, 'Your windows have been cleaned'."

Others also noticed the apparent contradiction on Twitter, with Bloomberg reporter Rob Hutton quipping: "I bet that note has a number on it somewhere, indicating roughly how much might be considered a fair payment".

Tom McKiddie, a senior accountant at Crunch Accounting, told the Huffington Post UK: "It seems the so-called hypocrisy is just hot air, since the article later said Mr Balls receives a hand-written invoice every few months.

"The invoice acts as a receipt and will be kept as a record of the transactions. The window cleaner will need copies of these invoices should HMRC ever investigate them, so if anything, Ed Balls encouraging this practise is the right thing to do. It could also save the business some trouble if HMRC ever did an audit on them - this could happen regardless of whether they pay correct tax or not."

A spokesman for the shadow chancellor stressed that his demand for receipts applied to jobs where he pays in cash. He also said that Balls receives handwritten invoices every month, and pays the cleaner by cheque or bank transfer and has "done this for 17 years with the same local business".

The receipts row came after Balls was asked on Radio 5 what constituted tax avoidance, and responded: "The right thing to do if you are having somebody cut your hedge for a tenner is to make sure they give you their name and address and a receipt and a record for the fact that you have paid them."

Asked whether he himself followed that rule, he added: "Absolutely. That's because I am the shadow chancellor and I'm extremely careful about these things."

David Cameron joked on Tuesday that his plan was to give Balls "more time to clean his own windows and cut his own hedge" after the general election.

See also:

Politician Tax Avoidance Controversies
George Osborne (01 of05)
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The Chancellor was embroiled in his own tax controversy after Channel 4 reported in 2010 that he stood to gain more than £4 million from a family trust fund which would save him and fellow beneficiaries £1.6 million in inheritance tax. Osborne's spokesman seemed to accept that he would get his share of the family fortune tax-free, but that his share would still face death duties when he died.
Danny Alexander(02 of05)
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Osborne's Lib Dem deputy at the Treasury, Danny Alexander, admitted that he had used a tax loophole to not pay capital gains tax when he sold his taxpayer-funded second home in South London for £300,000 in June 2007.
Stephen Hammond (03 of05)
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Transport minister Stephen Hammond, who criticised Livingstone for axoiding tax, was reported to be an investor in a firm that also used tax breaks - and had failed to declare this to Parliament.Hammond is a partner in Harwood Film Partnership, which has deferred tax for its partners, the Guardian reported. The minister said that the scheme was legal and he did not have to declare his involvement.
Ukip leader Nigel Farage(04 of05)
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Nigel Farage, who previously railed against "rich people and successful companies" not paying their fair share, was reported to have funneled earnings into a company which meant he pays 20% corporation tax on profits of £45,000, rather than 40% income tax.According to the Mail Online, Farage set up a company, Thorn In The Side Ltd, to manage earnings he makes from media appearances and giving speeches. The newspaper calculates the arrangement saved him £11,097.93 last year.
Sajid Javid (05 of05)
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Back when culture secretary Sajid Javid worked as a £3million-a-year City banker, he reportedly received a huge bonus channeled through a tax haven.According to the Mail on Sunday, Javid was among a group of senior Deutsche Bank executives who received bonuses worth at least £50,000 each shares in a Cayman Islands company – to lower the company’s total tax bill.A spokesman for Javid said that he was paid with "all tax deducted already" and "did not personally receive any tax advantage whatsoever from these arrangements."