Due to MPs’ standard pay increasing to £84,144 from April this year, 2022-23 would be the first year senior government ministers would have to pay the 45pc tax rate. However, the chancellor, Kwasi Kwarteng, scrapped the additional tax rate as part of a mini-budget of tax cuts presented on Friday. Cabinet ministers claim an extra £67,505 on top of their MPs’ salary, while the Prime Minister claims an extra £75,440. This would have put them all over the £150,000 threshold for the tax. A Guardian analysis of the most recent register of members’ financial interests found a further 16 MPs had outside earnings or employment in the past 12 months that would have pushed them over the £150,000 threshold. They include former prime minister Theresa May, who is estimated to earn £47,305.70 more if she earns the same earnings next year as in the last 12 months. Former attorney-general Sir Geoffrey Cox would save around £53,963.30 as a result of the tax being scrapped if his earnings remain the same as last year – more than the average nurse or teacher earns before tax. Much of Cox’s earnings came from research work in the British Virgin Islands, a tax haven, although his earnings came through Withers LLP in London and were subject to HMRC. The current attorney-general, Michael Ellis, will benefit more than all cabinet ministers from the tax cut, saving around £1,429.70 from the scrapping of the 45pc tax rate. Labor leader Keir Starmer could also benefit. The Leader of the Opposition is paid £63,098 by law, on top of an MP’s basic salary. Starmer also made £18,902 in outside earnings in the last 12 months, which will take him over the £150,000 threshold. £18,450 of Starmer’s outside earnings came from a book advance, which he pledged to donate to charity. Without another book advance next year, Starmer would not break the £150,000 mark. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Should their current rate of gains continue, other Tory MPs set to gain from the tax cut include Fiona Bruce, Andrew Mitchell and Jeremy Hunt. Shadow frontbench MPs Jess Phillips and David Lammy were the highest paid Labor MPs who could benefit if their earnings remain the same as last year. When an MP had declared recurring remuneration for the foreseeable future – for example, an amount for writing a weekly newspaper column or monthly consultancy work – the remuneration received was multiplied to calculate an annual total. Some MPs will no longer earn the same money as they have for the past 12 months. For example, Labor MP Dan Jarvis is no longer mayor of South Yorkshire, for which he received an annual salary of £79,000 on top of his parliamentary salaries. Newly appointed junior members of government on lower ministerial salaries will no longer be able to top up their parliamentary pay with second jobs while on the back burner.
