Nigel Farage faces jail threat for undeclared donations

Nigel Farage faces a huge fine or even imprisonment, after failing to declare hundreds of thousands of pounds worth of donations.

The Ukip leader received £205,000 worth of donations-in-kind for the use of an office near Bognor Regis.

Under electoral law, donations must be declared to the Electoral Commission within 30 days.

Farage's undeclared donations date as far back as 2001 but were only declared last month.

The Ukip leader now faces the prospect of a maximum £20,000 fine or even a prison sentence.

The Electoral Commission said they were now considering whether to take any action against him.

"The donations in kind have been reported late. The party election finance team is now reviewing all of the information," a spokesperson said.

"Once that process is complete we will decide whether any action needs to be taken."

A spokesperson for the Ukip leader said he was "surprised" to learn that he had broken any rules.

"Every year since 2001, Mr Farage has declared in his European Parliament Register of Interests the use of a rent-free office from J Longhurst Ltd," they said.

"The premises has been used as his MEP office so the European Parliamentary register was the logical place for it to be declared.

"Mr Farage was surprised to learn that the Electoral Commission thought it should be informed as well as this did not accord with the professional advice he had received at the time.”

News that Farage is under investigation for his expenses came as his personal life also came under scrutiny.

A photograph of the Ukip leader is now being used to advertise a website for people seeking extramarital affairs.

The mobile billboard seen in London yesterday, carries a large image of Farage with the slogan: "German wife? British Mistress? Now I can have both!"

Former Ukip MEP Nikki Sinclaire claimed earlier this year that Farage had employed both his German wife and his alleged British mistress Annabelle Fuller with taxpayers' money.

He has described the allegations as "beneath contempt".