SNP in talks with HMRC over potential illegal VAT claims linked to Peter Murrell embezzlement | UK News

The SNP has “opened up discussions” with HM Revenue and Customs amid concerns Peter Murrell’s embezzlement may have led to illegal VAT claims, John Swinney has confirmed.

Murrell last week admitted to embezzling £400,310.65 from the party while in charge as chief executive.

The 61-year-old, who is the estranged husband of former first minister Nicola Sturgeon, used false invoices and fake expenses to bankroll a lavish lifestyle.

At First Minister’s Questions on Thursday, Scottish Labour leader Anas Sarwar branded it the “biggest political and financial scandal in the history of the Scottish parliament”.

Mr Sarwar noted how political parties are able to claim back VAT on some purchases relating to operating costs.

He highlighted how the infamous £124,500 Niesmann and Bischoff Smove 7.4E motorhome was recorded in the system as a van, so would therefore be “subject to 20% VAT”.

The £3,070 spent on a robotic lawnmower and installation was misdescribed in the SNP’s accounting software as “legal fees”, while the £23.98 used to buy an OXO Good Grips 2-piece silicone egg poacher was recorded under computer hardware purchases and described as “ethernet cabling”.

Mr Sarwar said: “Today, we have written to His Majesty’s Revenue and Customs (HMRC), asking them to launch a full investigation into the potential defrauding of the public purse.”

In response, First Minister Mr Swinney admitted Murrell’s embezzlement of SNP funds “does have potential implications in relation to the payment of taxation”.

He added: “That’s why the Scottish National Party has already opened up discussions with His Majesty’s Revenue and Customs on exactly that point.”

A spokesperson for HMRC said: “We cannot comment on individuals due to taxpayer confidentiality law.”

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Murrell’s embezzlement was laid bare before the High Court in Edinburgh

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On Tuesday, the narrative of Murrell’s embezzlement was laid bare before the High Court in Edinburgh.

The money was said to have come from membership fees, party donations and legacy payments.

Judge Lord Young heard how the motorhome had been kitted out with luxury extras, top-of-the range kitchen implements and high-quality toiletries.

However, when seized by police in April 2023, it was found only to have travelled four miles.

The SNP’s national executive committee (NEC) has agreed to launch a compensation order in a bid to recoup the money embezzled by Murrell.

A spokesperson for the SNP said: “Our party was betrayed by Peter Murrell and while this may take some time, if we are successful we will use that money for the purpose in which it was donated – securing Scotland’s rightful place as an independent country.”

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The announcement comes after Mr Swinney admitted the £600,000 raised by the party to fight another independence referendum – which sparked the police probe that eventually snared Murrell – had been used for other party matters.

Scottish Labour deputy leader Dame Jackie Baillie said the SNP must set up a reimbursement scheme if they are able to recover the cash, similar to a previous initiative it had established.

She said: “This money was not just stolen from the SNP – it was stolen from thousands of individual members who invested in a cause they believed in and trusted the party with their hard-earned cash.

“The SNP has already failed to protect funds from Peter Murrell’s spending sprees and frittered away £600,000 of ring-fenced money – it must not steal from members again by holding on to this money.

“John Swinney must promise that if they manage to claw back this money, they will set up a reimbursement scheme and give members a chance to claim back the money stolen from them.”

Murrell pleaded guilty to embezzlement last week and will be sentenced on 23 June.