Nightclub owners face the music over £195k tax owing

The failure to submit accounting records and pay thousands of pounds worth of tax has seen two Lancashire nightclub owners given seven-year directorship disqualifications

Married couple Paula and Paul Kelly were both directors of Flexitell Ltd, which was incorporated in March 2016. The husband and wife managed several nightclubs and pubs in Blackpool under the trading name Ma Kelly’s.

The company entered into administration in May 2017 and Flexitell was referred to the Insolvency Service for further enquiries.

Investigators found that Paul and Paula Kelly had not maintained or preserved accounting records throughout the life of the company.

This has meant the nightclub owners could not explain their claimed £1.1m turnover, £195,000-worth of tax owed, and the outstanding balances on their directors’ loans.

Mike Smith, chief investigator at the Insolvency Service, said: ‘Failing to keep accounting records up to date is a serious obligation for any business director.

‘The Kellys did not take their responsibilities seriously and at no point did they engage with our investigation.

‘These bans should serve as a warning that if company directors do not keep good company records, they run the risk of facing disqualification from their business for a significant period.’

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