South Thanet MP Craig Mackinlay has pleaded not guilty to charges relating to his 2015 general election expenses.

Mackinlay, 50, his election agent at the time Nathan Gray, 28, and campaign specialist Marion Little, 62, were all charged under the Representation of the People Act 1983.

The charges relate to allegations that the party's election expenses during the 2015 campaign in the constituency were not properly reported to the Electoral Commission.

They all appeared at Westminster Magistrates' Court today where all three indicated not guilty pleas to the charges.

Expenses incurred during the campaign in South Thanet were wrongly attributed to national expenditure instead of local expenditure, it is claimed.

Had they done so, they would allegedly have been in breach of spending limits.

They are said to concern the costs of battle buses used to bring in activists and hotel accommodation.

Mackinlay, who gave his address as Ramsgate, Kent, is charged with two counts of making false election expenses declarations.

The first charge claims that, on June 11 2015, being a candidate, he "knowingly made the declaration accompanying the return for the regulated period from 19 December 2014 to 29 March 2015".

The second charge alleges that, on June 11 2015, being a candidate, he "knowingly made the declaration accompanying the return for the regulated period from 30 March 2015 to 7 May 2015".

Gray, of Cranbrook, Kent, appeared charged with one count of making false election expenses declaration on June 11.

It claims that, being the election agent, he "knowingly made the declaration accompanying the return for the regulated period from 30 March 2015 to 7 May 2015".

Little, of Ware, Herts, was charged with three counts of the same.

The first alleges that she "did aid, abet, counsel and procure Craig Mackinlay", to "knowingly make the declaration accompanying the return for the regulated period from 19 December 2014 to 29 March 2015".

The second charge also involves Mackinlay but covers the period of March 30 2015 to May 7 2015.

And the third charge she faces claims she did "aid, abet, counsel and procure Nathan Gray, being the election agent for Craig Mackinlay a candidate in the Thanet South constituency at the UK Parliamentary General Election on 7th May 2015, to knowingly make the declaration accompanying the return for the regulated period from 30 March 2015 to 7 May 2015".

Wearing a grey striped suit, Mackinlay loudly said "not guilty" as he was asked to indicate his pleas from the dock.

District Judge Tan Ikram sent the case to Southwark Crown Court, where the trio will appear on August 1.

Outlining the case, Zoe Martin, prosecuting, said: "Following news reports in early 2016 that suggested that the Conservative Party's spending returns for the UK General Election of 2015, amongst others, may not have been accurate or complete, the Electoral Commission opened an investigation in this regard in February of the same year.

"In due course various findings were made against the Conservative Party and penalties imposed pursuant to the Commission's powers under the Political Parties, Elections and Referendums Act 2000."

Mackinlay and Gray were referred to Kent Police, following the commission’s finding the party had included in its national return spending that should have been in the local one, it was said.

"None of the expenses associated with the battle bus activists or CCHQ staff or volunteers were included in the long or short returns submitted" - Zoe Martin, prosecuting

Police established that, similar to other constituencies, South Thanet was visited by a 'battle bus' of Tory activities during the short campaign period between March 30 and May 7.

Ms Martin said: "On the majority of these occasions evidence shows although the battle bus activists may have also been promoting the national party, they assisted Mr Mackinlay's election campaign.

"Expenses incurred by the activists included the costs associated with the battle buses and, on at least one occasion, the cost of activists staying overnight in the constituency."

As well as battle bus activists, a campaign director and two other CCHQ staff members, and CCHQ volunteers, arrived in South Thanet just before the short campaign period, the court heard.

Ms Martin said: “During this time all but one of the staff and volunteers stayed at hotels in the area, principally the Royal Harbour Hotel, but also at the Premier Inn in Margate and at least two other hotels, albeit not all of them did so all of the time.

“This resulted in expenses being incurred in addition to the cost of any staff salaries.”

On May 8 2015, Mackinlay was elected with 38 per cent of the vote.

The next month, Gray submitted Mackinlay’s election expense returns for the long and short campaign periods, it was said.

For the long campaign period – December 18 2014 to March 29 2015 – a total of £32,661.26 was reported, against a maximum spending limit of £37,016.38, the court heard.

And for the short period, March 30 to May 7 2015, a total spend of £14,837.77 was reported against a maximum of £15,016.38, it was said.

Ms Martin said: “None of the expenses associated with the battle bus activists or CCHQ staff or volunteers were included in the long or short returns submitted.”

A number of other items of expenditure also appeared to be missing, it was said.

This allegedly included £500 of Facebook advertising and the cost of hiring two venues for public meetings.

The costs of hiring meeting rooms at the Royal Harbour Hotel for campaign activity, such as stuffing envelopes, were also not included, the court heard.

The costs of personalised rosettes, a transit van and a handyman may have also been omitted, it is alleged.

Ms Martin said: “These matters are, in short form, advertising, transport, public meetings, service of an agent or other person in relation to the election.”

During the 2015 election, Mackinlay beat former Ukip leader Nigel Farage by more than 2,000 votes in the Kent constituency.

Mackinlay was re-elected as MP for South Thanet in last month's general election.

The hearing continues.