Chef Paul Heathcote says he broke HMRC rules to save jobs

LANCASHIRE chef and businessman Paul Heathcote has said he breached HMRC rules to keep his staff in jobs – and claimed there was no need for the authorities to take him to court.

Mr Heathcote said his reputation and that of his two Preston restaurants had been hurt by the coverage that ensued after he was fined £10,000 this week.

Prior to this matter, he said he had had an “exemplary” track record, and had only traded without a VAT bond – which he couldn’t afford to pay at the time – to stay in business.

He said he had not drawn a salary from his Heathcote’s Brasserie business, has had paid staff nearly £1m in wages.

In a statement he said: “I never disputed or hid from the fact that at a time of financial stress the business had traded without the bond. As soon as they asked me I admitted this back in the summer and this was the reason HMRC decided to prosecute without further discussion.

“I did what I did for the loyal team many who have served the business over many years and who are now still earning a living in this employment. The £3,000 fine imposed represents 2% of the potential penalty that could have been imposed.  I believe this was on balance a fair price to keep good people gainfully employed.

“I still feel strongly that there was no necessity to bring the matter to court and further dialogue would have produced the same conclusion without wasting valuable time and tax payers’ money.”