Ukip is facing a probe by the Electoral Commission into its election expenses in two Kent seats.

The probe follows an EU audit which alleged the party had misspent funds allocated to the European Parliament group ADDE, which Ukip MEPs belong to.

Spending by Ukip in South Thanet and Rochester and Strood on polling surveys and how they were paid for will be part of the inquiry.

In a statement, the Electoral Commission said it had decided to act after receiving the report from the EU auditors.

A spokesman said: “The Commission has now opened its own investigation into Ukip to look at whether there has been any breach of UK election law. This includes whether any impermissible donations have been accepted by the party."

Ukip has denied any wrongdoing and says all its expenses complied with the rules.

EU auditors say their inquiry had raised questions about how Ukip had spent money during the general election campaign from the fund.

In particular, auditors flagged up concerns about pre-election polling in South Thanet - where Nigel Farage was defeated by Conservative Craig Mackinlay - and Rochester and Strood, where Mark Reckless was seeking to defend the seat after a by-election.

In a statement the European Parliament Bureau said: "The activities of the ADDE which were found to breach the rules for European party financing, were nine opinion polls held in the UK ahead of the 2015 general elections as well as ahead of the EU referendum in 2016, and a report on these polls.”

It added: "The expenditure linked to the services of three consultants was considered non-eligible by an external auditor and by the Parliament's administration."

If the claims are upheld, Ukip could face having to repay about £146,000.

Meanwhile, Kent Police say a separate inquiry into Conservative election expenses in South Thanet is ongoing.