Katie Price swerves £174,000 tax bill after cosmetics company goes bust

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Boss on Mar 30, 2022 - 11:26AM

Former glamour model Katie Price looks set to avoid a huge chunk of her tax bill after her cosmetics company went bust (Picture: Getty Images)

is set to avoid paying a £174,000 tax bill to HMRC after her cosmetics company went bankrupt.

The former glamour model, 43, has a number of businesses and side projects, including, most recently, the KP Equestrian clothing range and recently launching an On***ans account.

However not all of her projects go to plan, and in 2017 her cosmetics company, Jordan Trading Limited, went bust while owing hundreds of thousands of pounds.

At the time, Katie placed the company in voluntary liquidation, with Moorfields Liquidators.

Katie, who was once worth £40m, was .

Moorfields’ role has been to try and repay creditors who were owed money by Jordan Trading Limited when it collapsed five years ago, withthe company now reporting that model Katie owes more than £369,000.

Katie set up a number of businesses from cosmetics to nutrition and clothing ranges, and was declared bankrupt in 2019 (Picture: Getty Images)

Moorfields’ latest statement to Companies House shows Katie owes £192,376 to HMRC, £25,746 to ‘trade and expense creditors’ and £152,478 to the directors loan account.

However the liquidation company anticipates ‘that a distribution of approximately 8.19p in the £ will be made to the unsecured creditors’.

As reported by , this means HMRC is likely to receive just £15,755 of the £192K owed.

The model’s KP Equestrian range is separate to Jordan Trading Limited, which went bust in 2017 (Picture: PA)

Trade and expense creditors will receive just over £2,100 pounds of the full amount they are owed, and Moorfields themselves are claiming £56,553.

Their fee is over double what they originally estimated in 2017, however they claim it is because the liquidation has taken far longer than expected, having initially believed the process would take 18 months.

As well as dodging the hefty tax fee, Katie recently managed to avoid prison in regards to her bankruptcy as she attempts to pay of the £3.2 million debt she owes to creditors.

In February, the mum-of-five appeared in court, where she managed to strike a ‘last-minute’ agreement with the court that she would pay a ‘small contribution’ now to reduce her debt, as well as a new payment plan.

Katie had reportedly agreed to pay creditors £12,000 a month but allegedly failed to keep up with payments.

In April 2021, the former glamour model said to her.