The Defence Secretary John Healey has admitted he did not pay enough council tax on his London home.
Mr Healey underpaid around £1,500 in tax that was due under the second home council tax surcharge introduced in April, The Telegraph reported.
He should have paid around £3,000 a year to Westminster City Council for a home that he rents but only paid half this amount and rectified the mistake after being approached about it on Thursday, according to the newspaper.
He put this down to an “administrative error” by the local authority, which has since acknowledged it had issued an incorrect tax notice and apologised for the oversight.
A spokesperson for the Defence Secretary said the error lay with the local authority and that Mr Healey had “fulfilled all his obligations” by declaring the flat a second home on the relevant paperwork when he moved in.
The council tax owed, including the second homes surcharge, has now been paid in full.
MPs representing constituencies outside London can claim for the cost of renting a second home, including council tax and other related expenses.
Mr Healey is MP for Rawmarsh and Conisbrough in South Yorkshire.
A source close to the Cabinet minister said he paid the notice issued to him in good faith.
A spokesperson for Mr Healey said: “The Secretary of State fulfilled all his obligations as a tenant by notifying Westminster Council of the second home status of the tenancy on the council tax registration form when the tenancy began.
“Westminster Council made an administrative error which failed to classify it as a second home for council tax purposes, and led to an incorrect council tax notice being issued.
“The council have accepted fault and apologised for the error.”
A Westminster City Council spokesperson said: “The Secretary of State filled in the form correctly and registered the address as a second home.
“There was an oversight by the council and we did not register it as a second home. This led to an incorrect council tax notice being issued. We apologise for the error.”
