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The true extent of Katie Price’s financial crisis is laid bare for the first time as it’s revealed how much she really owes
KATIE Price’s severe financial problems can be laid bare for the first time as it's revealed she could face an investigation for being a ‘serial tax offender’.
The 40-year-old is mired in personal and business debts worth nearly £500,000, with nearly half of that being owed to HM Revenue & Customs in unpaid tax bills.
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Her company Jordan Trading Ltd is currently being closed down and overseen by an independent liquidator.
According to the latest liquidator’s statement of payments and receipts, publicly available on Companies House, the company owed £192,376.85 to HMRC and had trade debts of £25,745.54.
This included owing £13,012 to accountants Spencer Hyde Ltd and £7,526 to the London lawyers Simkins, who specialise in defamation and libel cases.
In total, there’s claims of £266,569.08 from five creditors.
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Currently, there’s no repayment plan in place and negotiations are continuing.
The situation is further complicated by the fact that Katie, who is the sole director, has taken out £152,478 from the business, which is called an ‘overdrawn director’s loan account.’
In these circumstances, Katie should have to pay it back, then pay off her creditors, which would total over £410,000, which may be a struggle as she's on the verge of declared bankrupt.
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Things have got so bad recently that pet-love Katie has been selling her farmyard animals in a desperate bid to sort out her finances.
She even dropped £130,000 off the price of her horsebox as she flogged it on eBay.
Despite this Katie has wasted thousands on her "online shopping obsession" and is said to have a whole room of unopened parcels in her messy mansion.
The former glamour model has even spent £10,000 revamping her bedroom after Kris Boyson moved in and refused to sleep in bed she shared with Kieran.
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The only assets she has is her Loose Women contract, which is stated on the liquidator’s report as earning her £10,000 over the course of 12 months from 16 Feb 2017 to 15 Feb 2018.
As the company owes over a quarter of a million, it would take her 25 years of appearing on the hit ITV show to pay off the debt.
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Her other only active business which is posting accounts is called KDC Trading. It’s last accounts, from October 2017, said it owed £52,868 to creditors and made a £21,986 loss.
There’s also a possibility that HMRC will investigate further as she's a ‘serial offender’ for shutting down companies that owe huge amounts to the taxman.
states: "HMRC and liquidators do monitor by law directors who are considered to be serial offenders. A serial offender may be a company director who closes a company leaving debts on more than two or more occasions."
Her company Marvellous Creative Group was dissolved in February 2018 and owed £8,785 in corporation tax and VAT - it paid only £398.16 and £1,552 back respectively.
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Pricey Media was also dissolved in February 2018 and owed £368,338 in corporation tax.
It’s the only time the taxman has been able to recover its losses, as the company paid back £391,588.06 to cover other liabilities as well.
Katie's publicist did not respond to a request for comment.
Katie is avoided bankruptcy earlier this month after her team attended court and asked for a individual voluntary agreement (IVA).
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An IVA sees debtors pay back their creditors over a period of time. Her application will be heard in 12 weeks on October 30.
If it is accepted, Katie's £2m West Sussex mansion would be safe from re-possession - although it's thought that Katie is £100,000 in arrears with her mortgage.
Bailiffs recently came knocking for an unpaid £3,000 bill - but she blamed it on estranged husband Kieran Hayler, 31.
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