Actor facing £188k tax bill spends £50k on wedding

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Actor Kelvin Fletcher, who played the part of Andy Sugden in Emmerdale for 20 years, is facing claims from HMRC over a £188,000 tax bill, and a six year ban from being a company director at the same time as reportedly spending around £50,000 on his wedding

According to Insolvency Service documents, Fletcher failed to ensure that Kedbray Ltd met its financial commitments to make full and timely payments to HMRC in respect of its tax liabilities from at least September 2013 and caused the company to continue trading whilst using company funds for his own benefit.

As a result the company traded and undertook transactions to the detriment of HMRC and to his own benefit from September 2013 to November 2015 resulting in tax liabilities of £188,032.

HMRC’s claim in the liquidation for unpaid corporation tax totals £51,297 comprising of £3,879 for the year ended 30 November 2012, £24,228 for the year ended 30 November 2013, £17,104 for the year ended 30 November 2014 and penalties and interest totalling £6,086.

At the time his company went into liquidation, there was an ongoing dispute between Kedbray and HMRC regarding the correct treatment of Kedbray’s income for tax purposes. HMRC’s claim in the liquidation includes regulation 80 determinations in respect of Class 1 NIC contributions on his earnings for the period from 2004/05 to 2013/14 totalling £130,747.

The Insolvency Service report states that the actor’s annual accounts show that in the year ended 30 November 2014 Fletcher received remuneration of £14,154, dividends of £75,000 and the balance on his overdrawn directors loan account was £76,051. The company had net assets of £32,405 and as such solvency was dependent upon repayment of the DLA.

Fletcher’s first meeting with the liquidator was on 22 October 2015, and the Insolvency Service claims that on or after that date he paid £25,875 out of Kedbray’s bank account in relation to wedding expenses and transferred £35,000 to his brother. Fletcher states that the funds paid to his brother were immediately repaid to him personally and used for living expenses and the costs of his wedding.

The liquidator has classified the payments for the wedding expenses totalling £55,117 as personal expenditure, bringing the directors loan account total to £131,735 at the date of liquidation, an increase of £55,683 from the balance on 30 November 2014.

Fletcher married Liz Marsland in November 2015.

He left Emmerdale in 2016 with his departure storyline showing his character going on the run after being framed by his girlfriend for the attempted murder of her adoptive father. However, it has been hinted that he may return to the show. 

Fletcher's agent has been contacted for comment.

Pat Sweet | Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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