Duchess faces tax probe

Fergie's finances could be put under the spotlight

Tax inspectors are considering a probe into the Duchess of York's financial affairs.

A spokeswoman for the duchess has confirmed that her accountants have been in discussions with the Inland Revenue.

Inspectors want to quiz the duchess over her £100,000-a-year bill for a nanny, chauffeur, secretary and office worker, according to The Sun.

If any investigation does take place then the duchess's accountants will co-operate fully

Kate Waddington, spokeswoman

The Inland Revenue has not confirmed whether an investigation will take place.

If it does, inspectors would look at whether the duchess has deducted the correct amount of tax for her four staff, the newspaper said.

If there is any shortfall in tax paid, the duchess, as the quartet's employer, could be fined and ordered to pay the sum plus interest.

The duchess's spokeswoman Kate Waddington said: "There has been some talk between the Duchess's accountants and the Inland Revenue about the possibility of a Standard Audit Pay Review.

The Duchess is on holiday with Beatrice and Eugenie

"But nothing has been confirmed and any investigation that does take place will be completely routine.

"All employers face SAPRs every few years.

"If any investigation does take place then the duchess's accountants will co-operate fully.

"The duchess wants complete transparency in her financial affairs."

The duchess is currently on holiday in Majorca with her daughters Beatrice, 11, and Eugenie, 10.