Katie Price, the 45-year-old former glamour model, has faced bankruptcy for the second time due to her failure to settle over £750,000 in unpaid tax. Unless she can repay the amount owed to
HM Revenue and Customs (HMRC), she risks losing her home.
Price did not appear at a court hearing in London to provide an explanation for her failure to pay the outstanding tax debt. Consequently, a judge at the High Court ruled her bankrupt after HMRC officials stated that she had neither made any payments nor responded to correspondence since the demand for unpaid tax was issued last year.
This is the second bankruptcy proceeding for Price, who is also facing creditors seeking a £3.2 million payment related to the collapse of her company, Jordan Trading Ltd.
According to Judge Sebastion Prentis, Price received a petition on November 27, 2023, demanding payment of £761,994.05. The sum includes unpaid tax from self-assessment on her earnings from 2020 to 2022, along with penalties and surcharges. Specifically, Price owes £142,405 for the tax year 2020-2021, £196,735 for 2021-2022, and £140,000 in unpaid VAT.
Despite receiving papers from HMRC in October informing her of the debt, Price failed to respond to the demand. Consequently, the judge concluded that a significant debt was due from Price to HMRC, leading to the bankruptcy order.
Price, who is known for her lavish lifestyle, first declared bankruptcy in 2019 when her company faced financial collapse. Her debts, including the £3.2 million owed to creditors, stem from her company's sale of perfume and cosmetics.
HMRC is determined to recover the outstanding amount, and if necessary, will seize assets owned by Price, potentially including her £2 million mansion, known as the 'Mucky Mansion', which has fallen into disrepair.
This latest court ruling compounds Price's recent troubles. In addition to her financial woes, she was fined £880 and received penalty points for driving without a license or insurance in August 2023.
The legal proceedings highlight Price's ongoing financial challenges and the potential loss of her assets, underscoring the need for her to address her fiscal responsibilities. Photo by Southbank Centre, Wikimedia commons.