UKIP leader Nigel Farage is facing a complaint about his use of EU expenses, it has been reported.
The Times said a former party official had raised questions about how Mr Farage used his "general expenditure allowance" and as a result had taken the matter to the EU's anti-fraud body.
The allowance is intended to cover the running of his constituency office.
Mr Farage said the "outrageous, ridiculous and absurd" allegation was part of "a campaign... to nobble me".
Office expenditureThe Times said Mr Farage received £15,500 a year to run his constituency office in Bognor Regis - but that the office had been provided rent-free by UKIP supporters.
End Quote UKIP spokesmanNigel Farage is confident that he has abided by European parliamentary rules at all times"
A former office manager claimed that the premises cost only about £3,000 a year to run.
The EU does not demand a detailed breakdown of office expenditure but Mr Farage insisted the running costs were about £1,000 a month.
Mr Farage told the BBC the money was an allowance, not an expense, adding: "I can spend the money on whatever I choose to in support of my work as an MEP."
He said the story was part of "a politically motivated campaign by the establishment" - through "the establishment voice piece", the Times - to try to derail UKIP ahead of next month's European elections.
He would not rule out legal action against the newspaper, adding: "I will never speak to the Times again."
Unprecedented scrutinyUKIP said the allegations "lack substance".
The party claimed that the office allowance was used in part to pay for additional premises, and accused the newspaper - which it called the mouthpiece of the political establishment - of embarking on a "fishing expedition".
UKIP said in a statement: "Nigel Farage is confident that he has abided by European parliamentary rules at all times when spending allowances.
"The Times has raised a number of 'fishing type' allegations, all of which lack substance as to their formulation and provide no substantive questions needing to be answered.
"In fact many of your questions are probably just as applicable to any of the other political parties contesting the forthcoming European elections with figures and statements duly amended to suit."
BBC political correspondent Iain Watson said that Mr Farage was coming under unprecedented scrutiny in the run-up to the European election, in which the UKIP leader has expressed hopes that his party will top the poll.
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