Katie Price dodges £174k tax bill as her company is shut down amid bankruptcy
KATIE Price will swerve a £176k tax bill from her insolvent cosmetics company Jordan Trading Ltd, which went bust owing hundreds of thousands.
The firm was put into voluntary liquidation five years ago with the 43-year-old’s total debts now up to £3.2 million and there are fears she may even lose her “mucky mansion".
According to the liquidator’s most recent report filed at Companies House, Katie owes £192,376 to HMRC, £25,746 to “trade and expense creditors” and £152,478 to the directors loan account.
Liquidator Moorfields, state that it anticipates “that a distribution of approximately 8.19p in the £ will be made to the unsecured creditors”.
This means the taxman can expect to receive just £15,755 - meaning Katie will not have to pay £176,621 in tax.
Trade and expense creditors will get £2,108 out of the £25,746 they’re owed by the firm, which handled KP’s perfume and make-up range.
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HMRC, as they are over five per cent of the value of the unsecured creditors, can request for a further breakdown within 21 days of the report.
Over the course of the financial year, the failed company failed to realise any further assets, apart from bank interest of £2.26 and a tax refund of £3.74, which the liquidators claim was sent by the tax office in error.
In total, Moorfields are claiming £56,553 in liquidator costs and expenses, which is over double the estimate when the company went bust in 2017.
It claims its fee is excessive because the liquidation has taken much longer than expected, as “more time than originally anticipated has been spent dealing with the Directors’ outstanding loan account”, “making enquiries with the IVA [Individual Voluntary Arrangement] Supervisor, and latterly, the trustee in bankruptcy, regarding claims in the Director’s insolvent personal estate”.
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They expected to close the liquidation within 18 months, but “this has increased due to the Directors IVA and subsequent bankruptcy.”
Bankrupt Katie's financial issues have been well documented and she has a pending High Court case after "failing to engage properly" with creditors over her £3.2million debt.
The bankruptcy hearing, moved from December, will review her attempts to pay debts accrued by Jordan Trading Ltd which oversaw her perfume and make-up lines.
Katie’s bankruptcy trustees are said to have been pulling together a dossier of the mum-of-five’s deals ahead of the hearing.
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The mother-of-five saw her once lucrative £45million media empire fall apart after the downfall of her third marriage to Kieran Hayler and the collapse of her businesses.
Since then, Katie has been working hard to make back the money she owes by starting a number of businesses, including selling bath bombs, perfumes and raunchy OnlyFans photos.
The Sun exclusively revealed last year that the bankrupt mum-of-five was planning to join the site in a bid to try and make some quick cash.
She later confirmed the racy decision as she insisted she was going to "make millions"; and "empower women" using the site.
The star also launched her own money-spinning beauty brand as she continued to rebuild her empire last May.
She teamed up with her Scented By Katie Price business partner for the new project, selling bath bombs, candles and relaxing sprays.
Along with her Scented By Katie Price bath bomb company, she has clothing lines with Carvella UK, JYY London and her own children's boutique Princess & Bunny.
Katie flogs her own clothes, shoes, accessories via the online fashion marketplace DEPOP to make cash.
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She also lists her kids clothes for as little as £3 an item and even sold her old sofa for £1,500 on the website.
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The star makes a regular income from numerous paid partnerships on social media and has flogged personalised video messages to fans for £150 each.
She also started her own equestrian clothing line - KP Equestrian, with a range designed to “dazzle in the saddle”.
