Lib Dem leader Sir Ed Davey and ex-environment secretary Ranil Jayawardena are two of 24 MPs who were paid for work outside parliament through companies set up and controlled by themselves or their family.
Could all-party parliamentary groups represent 'next big scandal'?A spokesperson for Sir Ed said:"All of Ed's business was entirely in keeping with the rules, and he has been fully transparent about it.
While the use of personal service companies to manage second-job earnings is legal, there is one area where tax experts have told Sky News that some MPs could be running the risk of breaking rules. It is possible to make a voluntary declaration to HMRC to ensure the correct taxes are paid on these jobs, but experts said that people typically rarely do so when receiving fees via a company. In these circumstances the company is an"unnecessary structure", according to employment status expert Rebecca Seeley-Harris, although there is no evidence to suggest these three MPs have not made the required voluntary declaration.
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